Question

ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerland and would like to expand its foreign operations with a new facility in China. ABC Software has had difficulty obtaining funds to expand. A friend of the CEO recommends that the company should explore an offshore financial center, which ________.

Answer 1

Answer:

An offshore financial center is a foreign country or international territory whose financial sector is not well regulated, or is not regulated at all. Their financial institutions serve foreign residents. Many of those offshore financial centers have financial sectors that are disproportionally large compared to their local economies.