Which newspaper article would be likely to result in foreign capital moving out of a country?
A.
Corporate Taxes Reduced
B.
New Taxes on Foreign Direct Investment
C.
Government Re-elected for a Fourth Consecutive Term
D.
International Ranking of Domestic Level of Education Rises Significantly
The Answer Is:
B
This question includes an explanation.
Explanation:
New taxes on foreign direct investment increase the cost of investing in a country, making it less attractive for foreign capital and likely causing capital outflows. The feedback from the document explains:
"Capital moves in and out of a country based on a variety of risk factors. Increased trade barriers or increased taxes on foreign investments would typically reduce the attractiveness of a country for foreign investment. (a), (c), and (d) would all indicate positive trends in a risk factor analysis."
[Reference: Chapter 2 – Overview of the Canadian Financial MarketplaceLearning Domain: An Introduction to the Mutual Funds Marketplace, , , ]
IFC PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"