Which of the following would most likely be used by a host country to restrict incoming foreign direct investment?
A)Differential tax rates for earnings abroad
B)Insurance to cover the risk of overseas investments
C)Low-interest loans to investors
D)Performance demands

Question

Quizplus · Accepted Answer

Performance demands, such as requirements for local content or technology transfer, can be used by host countries to restrict incoming foreign direct investment. This is because meeting such demands may be difficult or costly for foreign investors, making the investment less attractive. Differential tax rates, insurance, and low-interest loans, on the other hand, would typically be used to incentivize or support foreign investment rather than restrict it.

Which of the Following Would Most Likely Be Used by a Host