Exam 18: Takings and National Controls on Foreign Direct Investment

Artificially manipulated pricing between related corporations is known as transfer pricing.

Modern traditional theories of the taking of private property are followed by:

An American firm that builds a factory abroad for the building of component parts to be shipped back to the United States does not qualify for OPIC insurance.

Americans have begun to offer their securities to investors abroad through:

The essential problem in soft-currency countries is that despite the sufficient amount of hard currency available,the excessive bureaucratic and regulatory framework makes gaining access to that currency very difficult.

The modern traditional theory recognizes the sovereign's right to nationalize foreign-owned property but places conditions on the exercise of that right.

Which is not a type of adjustment to regulations often addressed in privatizations?

The precise structure of inactive investment in a foreign nation depends largely on the treatment of the structure under the tax laws of the host country and the U.S.

The vehicle of choice most often for a U.S.investor who wishes to exercise a measure of control over its foreign investment is a(n):

Assess the arguments for and against taxing e-commerce at an international level as opposed to a domestic level.

Under the modern traditional theory,the sovereign may nationalize foreign-owned property only where:

OPIC insurance is primarily intended to protect U.S.investments in Japan,Canada and Western Europe.

Suppose that you plan to set up a subsidiary in a foreign country.Devise a list of the types of tax incentives you seek to accrue.

In order to qualify as a foreign sales corporation under U.S.tax law,the company must have management outside of the United States in one of the countries approved by the Department of Treasury.

Simplification and centralization of foreign investment pre-approval procedures have become commonplace in developing countries in recent years.

Under U.S.law,corporations are taxed on all income,including income from foreign sources.

An investment in which the investor limits its involvement to providing equity capital in an enterprise managed by another in hope of a profitable return is called a(n):

North American and Western European countries generally accept the modern traditional theory of the taking of private property as customary international law.

If a U.S.firm creates a foreign subsidiary corporation,it:

The term nationalization usually applies to the expropriation of an entire industry or natural resource of a nation.