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
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