Question: Why do countries where subsidiaries are located sometimes restrict the amount of dividends that may be paid to the parent firm in its home country?
Why do countries where subsidiaries are located sometimes restrict the amount of dividends that may be paid to the parent firm in its home country?
A.by restricting such payments they make investment by other companies in their country more attractive
B.by restricting such payments they increase the return a company can expect to earn on their subsidiary
C.by restricting such payments they hope to force the multinational to invest more in their country
D.actually countries where subsidiaries never restrict such dividends as they prefer to get the money out of their economy
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
