When a U.S. company buys shares of stock in a French company on ...

[Jipu 123]

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

[Qarqy]

Answer to Question 1

B

Answer to Question 2

A