If an MNC Exports to a Country, Then Establishes a Subsidiary

question 36

Multiple Choice

If an MNC exports to a country, then establishes a subsidiary to produce and sell the same product in the country, then cash flows from prevailing operations would likely be ____ affected by the project. If an MNC establishes a foreign manufacturing subsidiary that buys components from the parent, the cash flows from prevailing operations would likely be ____ affected by the project.

• A) adversely; adversely
• B) favorably; adversely
• C) favorably; favorably
• D) adversely; favorably

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Definitions:

Delivery Date

In finance, specifically with futures contracts, it is the date on which the underlying asset must be delivered or received under the terms of the contract.

Bond Market Indexes

Benchmarks that aggregate and measure the performance of bonds and fixed-income securities in a specific market segment or sector.

Infrequently

Infrequently pertains to events or actions that occur seldom or not often.