The Process of Sending Cash from a Foreign Subsidiary Back

question 50

Multiple Choice

The process of sending cash from a foreign subsidiary back to the parent company is known as _____. 

• A)net present value analysis
• B)political exchange
• C)international earnings shifts
• D)capital allocation
• E)repatriation of earnings

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Definitions:

Economic Thinking

A systematic approach to analyzing financial decisions and phenomena, employing principles of economics to evaluate costs, benefits, and impacts.

Objectively

Objectively means considering something based on facts and without influence from personal feelings or biases.

Incentives

Rewards or penalties that motivate individuals or entities to act in a desired manner, typically aimed at aligning interests or encouraging specific behaviors.

Personal Costs

Expenses directly paid by an individual, often including living expenses, tuition, and personal bills.