When a U.S. company buys shares of stock in a French company on France's stock market, the U.S. balance of payments records the transaction as an ________.
A) outflow of capital with a plus sign
B) outflow of capital with a minus sign
C) inflow of capital with a plus sign
D) inflow of capital with a minus sign
Question 2
A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with ________.
A) lower corporate income-tax rates
B) significant restrictions on profit repatriation
C) low tariffs for the product in question
D) political instability
George French Angas
Christian Gladu, The Bungalow Company, The Birch, North Town Woods, Bainbridge
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