Question: Constraints on Positioning Funds. Each of the following 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 government 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.