Economics · International Economics
The term 'Phantom Capital', often discussed in the context of global investment flows and tax planning by multinational corporations, refers to which of the following?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Forms of Foreign Direct Investment structured mainly to minimise tax liabilities of multinational enterprises.✓
- 2Foreign portfolio investments that show sharp fluctuations due to speculative capital movement.
- 3Venture capital funding provided to start-ups benefiting from temporary tax exemptions.
- 4Special-purpose foreign investments directed toward strategic sectors such as defence and healthcare.
Correct answer
Forms of Foreign Direct Investment structured mainly to minimise tax liabilities of multinational enterprises.
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