UK-Based MNCs Whose Foreign Subsidiary Generates Large Earnings May Be

question 39

True/False

UK-based MNCs whose foreign subsidiary generates large earnings may be able to offset exposure to exchange rate risk by issuing bonds denominated in the subsidiary's local currency.

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Definitions:

Natural Monopoly

A market structure where a single company can supply a product or service more efficiently than any potential competitor due to factors like economies of scale.

Government-Owned

Assets, businesses, or entities that are owned and operated by a government rather than by private individuals or companies.

Cable Television

A system of delivering television programming through coaxial cables or fiber-optic cables to consumers, offering a wide range of channels and services.

Natural Monopoly

A market situation where due to the high costs of entry or unique resources, one provider effectively serves the entire market, making competition unfeasible.