Which of the Following Is a Strategy Than an MNC

question 35

Multiple Choice

Which of the following is a strategy than an MNC might use when the host country where a subsidiary is located imposes restrictions blocking the transfer of funds from the country?

• A) Instruct the subsidiary to set up a research and development division to use funds within the host country.
• B) Use transfer pricing in a manner that will increase the expenses incurred by the subsidiary.
• C) Instruct the subsidiary to obtain financing from a local bank in the host country.
• D) All of these are strategies that an MNC might use when the host country where a subsidiary is located imposes restrictions blocking the transfer of funds from the country.

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