Profit repatriation is essential for several reasons:
Maximizing Returns: It allows MNCs to utilize profits generated abroad to fund new investments, pay dividends to shareholders, or reduce debt in the home country. Currency Risk Management: By repatriating profits, companies can mitigate the risk associated with currency fluctuations in foreign markets. Tax Efficiency: Strategic repatriation can minimize the overall tax burden by taking advantage of tax treaties and favorable regulations.