Economics · International Trade
In the context of international trade and capital flows, the term 'round tripping' refers to a method primarily used for:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Financing early-stage domestic startups via institutional venture capital.
- 2Boosting the volume of legitimate domestic manufacturing exports.
- 3Evading domestic taxes by routing local funds through offshore destinations and bringing them back as foreign investment.✓
- 4Channeling genuine foreign investments into infrastructure.
Correct answer
Evading domestic taxes by routing local funds through offshore destinations and bringing them back as foreign investment.
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