Financing from the Parent Company to Its Foreign Affiliates Is

question 5

Multiple Choice

Financing from the parent company to its foreign affiliates is generally a small percentage of total funding because:

• A)the returns on such investment are taxed at very high rates.
• B)the parent firm wants to reduce the risks to which its foreign activities are exposed.
• C)most foreign governments have imposed quotas of foreign investment in their domestic economy.
• D)most major home-country governments limit investment in foreign firms by their domestic firms.

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Definitions:

Subliminal Priming

A psychological phenomenon where stimuli are presented below the threshold of conscious perception to influence thoughts, feelings, or actions.

Conscious Awareness

The mental state of being fully present and aware of one's thoughts, emotions, and surroundings.

Absolute Thresholds

Refers to the minimum intensity of a stimulus that one can detect 50% of the time, a concept used in sensory and perception psychology.

Absolute Threshold

The minimum intensity level at which a stimulus can be detected by the senses at least 50% of the time.