With Regard to the Financial Structure of a Foreign Subsidiary

question 55

Multiple Choice

With regard to the financial structure of a foreign subsidiary

• A)Using local financing can reduce political risk.
• B)A MNC that finances a foreign investment with home-country equity faces greater risk of expropriation than if it had financed the investment with at least some local debt or equity.
• C)There may be advantages other than a reduction in political risk that encourage MNCs to finance foreign subsidiaries with local money.
• D)All of the above

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Definitions:

Kinship Terminology

The system of terms and classifications societies use to refer to relatives and define relationships among family members.

Genealogical Differences

Variations or distinctions found within family lineages or ancestries, which can impact inheritance, cultural identity, and social standing.

Totems

Objects, animals, or plants considered by certain societies to have spiritual significance and often acting as emblems for clans or families.

Clan Groups

Social groups characterized by common descent from a shared ancestor, often forming the basic units in tribal societies.