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  3. Study Set
    International Financial Management Study Set 5
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    Exam 16: Foreign Direct Investment and Cross-Border Acquisitions
  5. Question
    When Firms Undertake FDI
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When Firms Undertake FDI

Question 13

Question 13

Multiple Choice

When firms undertake FDI,


A) they become MNCs.
B) they reduce their tax rate since they can tell each country that they do business in that they paid their taxes in other countries.
C) they can exploit workers by paying them below-market wages in depreciating currencies.
D) all of the options

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