Each of the following factors is sometimes a constraint on the free movement of funds internationally. Why

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Each of the following factors is sometimes a constraint on the free movement of funds internationally. Why would a government impose such a constraint? How might the management of a multinational argue that such a constraint is not in the best interests of the government that has imposed it?
a. Government-mandated restrictions on moving funds out of the country.
b. Withholding taxes on dividend distributions to foreign owners.
c. Dual currency regimes, with one rate for imports and another rate for exports.
d. Refusal to allow foreign firms in the country to net cash inflows and outflows into a single payment.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Multinational Business Finance

ISBN: 978-0132743464

13th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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