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Tax Policies Affect the Incentive to Engage in FDI and Its

Question 2

Multiple Choice

Tax policies affect the incentive to engage in FDI and its means of financing for all of these reasons, except that they affect:

A) the profitability of FDI.
B) the profitability of FDI relative to domestic investment.
C) interest and exchange rates.
D) the cost of capital.

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