The Price Paid by an Importing or Buying Unit of a Multinational

question 13

Multiple Choice

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as

• A)marginal price.
• B)international transfer price.
• C)transaction risk.
• D)fixed price.

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Definitions:

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.

Dividends

Payments made by a corporation to its shareholders, often derived from the company's profits, and distributed on a regular basis.

Earnings

The amount of profit that a company produces over a specific time period, typically reported as net income.

Mature Firms

Mature firms are companies that have reached a phase of growth where earnings, sales, and cash flows are relatively stable and predictable.