Because Increased External Financing by a Foreign Subsidiary Reduces the External

question 48

True/False

Because increased external financing by a foreign subsidiary reduces the external financing needed by the parent, such an action will not affect the MNC's overall cost of capital.

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Definitions:

Anti-Predatory Lending

Legislation and regulations designed to protect borrowers from unfair, deceptive, or fraudulent practices by lenders during the loan origination process.

Underwriting Standards

Criteria used by lenders and insurers to assess the risk of applicants and determine eligibility for products.

Mandatory Arbitration

A requirement, often found in contracts, that disputes must be resolved through arbitration rather than through litigation in court.

Lemon Law Coverage

Protections afforded to consumers under laws that provide remedies for purchasers of cars and other consumer goods that fail to meet standards of quality and performance.