A British Firm Has a Subsidiary in the U

question 31

Essay

A British firm has a subsidiary in the U.S., and a U.S. firm, known to the British firm, has a subsidiary in Britain. Define and then provide an example for each of the following management techniques for reducing the firm's operating cash flows. The following are techniques to consider:
a) matching currency cash flows
b) risk-sharing agreements
c) back-to-back or parallel loans

---

Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Negative Reinforcement

Negative reinforcement is a behavioral psychology concept where the removal of an unfavorable stimulus strengthens a particular desired behavior.

Law of Effect

A principle stating that behaviors followed by favorable consequences become more likely, and behaviors followed by unfavorable consequences become less likely.

Respondent Behavior

A type of reaction to certain stimuli that is automatic or reflexive, not under voluntary control, typically conditioned through association.