Business
FinanceInternational Financial ManagementInfluence of Tax Laws on Cash Flow to MNC Parents The appendix to this chapter explains how tax laws can affect how much earnings subsidiaries remit to their parents. Explain why the U.S. tax rules prior to 2017 encouraged foreign subsidiaries of U.S.-based MNCs to reinvest their earnings in their location rather than remit the earnings to the MNC parent. How did the Tax Cuts and Jobs Act of 2017 cause a higher proportion of subsidiary earnings to be remitted to the U.S. parents?Influence of Tax Laws on Cash Flow to MNC Parents The appendix to this chapter explains how tax laws can affect how much earnings subsidiaries remit to their parents. Explain why the U.S. tax rules prior to 2017 encouraged foreign subsidiaries of U.S.-based MNCs to reinvest their earnings in their location rather than remit the earnings to the MNC parent. How did the Tax Cuts and Jobs Act of 2017 cause a higher proportion of subsidiary earnings to be remitted to the U.S. parents?
FindFindlaunch
International Financial Management
14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFindlaunch
International Financial Management
14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
Solutions
Chapter 14, Problem 35QA
Textbook Problem
Influence of Tax Laws on Cash Flow to MNC Parents The appendix to this chapter explains how tax laws can affect how much earnings subsidiaries remit to their parents. Explain why the U.S. tax rules prior to 2017 encouraged foreign subsidiaries of U.S.-based MNCs to reinvest their earnings in their location rather than remit the earnings to the MNC parent. How did the Tax Cuts and Jobs Act of 2017 cause a higher proportion of subsidiary earnings to be remitted to the U.S. parents?
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