Financing from the Parent Company to Its Foreign Affiliates Is

Multiple Choice

Financing from the parent company to its foreign affiliates is generally a small percentage of total funding because:

A) the returns on such investment are taxed at very high rates.
B) the parent firm wants to reduce the risks to which its foreign activities are exposed.
C) most foreign governments have imposed quotas of foreign investment in their domestic economy.
D) most major home-country governments limit investment in foreign firms by their domestic firms.