"Unbundling Fund Transfers" from an MNC and to Its Affiliates

question 33

Multiple Choice

"Unbundling fund transfers" from an MNC and to its affiliates refers to the following activity:

• A)instead of lumping all costs into a single transfer price,for the MNC (parent firm)to recognize the cost of the physical good and each service separately that it provides to its affiliates.
• B)in addition to charging for the cost of the physical good,for the parent firm to charge for technical training of the affiliates' staff,cost of worldwide advertising,royalty,licensing fee,and technology,whenever applicable,to facilitate for the MNC to present and support to the taxing authority of a host country that each charge is legitimate and can be well substantiated.
• C)used for removing blocked funds from a host country that is enforcing foreign exchange restrictions.
• D)all of the options

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Definitions:

Pleasant Situations

Scenarios or environments that induce feelings of happiness, satisfaction, or enjoyment.

Situationist Critique

A perspective in social psychology that emphasizes the influence of environmental and situational factors over stable traits in determining human behavior.

Walter Mischel

A psychologist best known for his work on personality theory and cognitive-affective behavior, including the famous marshmallow test on delayed gratification.

Situationism

Situationism is the theory that behavior is more strongly influenced by external, situational factors than by internal traits or motivations, emphasizing the power of context in shaping human actions.