Which of the Following Is True for a Multinational Enterprise

question 20

Multiple Choice

Which of the following is true for a multinational enterprise (MNE) ?

• A)Its affiliates usually get nearly all of their total financing from the direct investment flows.
• B)It usually transfers its liabilities to its foreign subsidiaries.
• C)Its domestic tax burden is mostly borne by its foreign affiliates.
• D)It usually provides intangible assets to its affiliates for their usage.

---

Definitions:

Negotiation

A dialogue between two or more parties intended to reach a beneficial outcome over a conflict, disagreement, or to forge agreements while addressing each party's interests.

Binding Mediation

A dispute resolution process where an impartial mediator makes decisions that are enforceable and legally binding on the parties involved.

Nonbinding Mediation

A voluntary dispute resolution process in which a neutral third party helps the disputing parties reach a mutual agreement, which is not legally enforceable.

Early Neutral

A dispute resolution process where a neutral third party assesses the merits of the case early on to assist in settlement or case management.