Repatriation of Profit

What is Repatriation of Profit?

The transfer of profit earned by a multinational's operation in a host country back to the country where the parent company is based. It matters to a host country because profit that leaves does not fund local reinvestment, local wages or local taxation, so the economic benefit of hosting the operation is smaller than its output figures suggest. How much is repatriated rather than reinvested locally is one of the main conditions determining whether a multinational's presence benefits a host economy.

This definition is part of the External Influences on Business Activity chapter in Cambridge O Level Business Studies.

Concepts related to Repatriation of Profit

• reinvestment
• tax revenue
• host country