Funds Can Be Moved Out of a Particular Country in Which

question 95

Multiple Choice

Funds can be moved out of a particular country in which a parent country has set up a subsidiary by

• A) setting high transfer prices for the goods supplied.
• B) removing royalties imposed on the subsidiary.
• C) charging a discounted fee on the subsidiary.
• D) issuing loans to the subsidiary at discounted rates.

---

Definitions:

Migration Labor

The movement of workers from one region or country to another in search of better employment opportunities.

Explicit Cost

Funds transferred to parties outside of the company as part of its operational expenses, encompassing staff wages, property lease payments, and material purchases.

Migration

The movement of people from one region to another for the purpose of settlement, often driven by economic, social, or political factors.

Destination Country's Wage Rates

Refers to the compensation levels for labor in a country where a business might consider relocating or outsourcing operations.