1. Constraints on Positioning Funds. Each of the fol- lowing factors is sometimes a constraint on the...
Question:
1. Constraints on Positioning Funds. Each of the fol- lowing factors is sometimes a constraint on the free movement of funds internationally. Why would a government impose such a constraint? How might the management of a multinational argue that such a constraint is not in the best interests of the govern- ment that has imposed it?
a. Government-mandated restrictions on moving funds out of the country
b. Withholding taxes on dividend distributions to foreign owners
c. Dual-currency regimes, with one rate for imports and another rate for exports
d. Refusal to allow foreign firms in the country to net cash inflows and outflows into a single payment
Step by Step Answer:
Fundamentals Of Multinational Finance
ISBN: 9780321541642
3rd Edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman