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:

Program Modes

Refer to distinct states or settings in which a device, application, or system can operate, each designed for performing specific tasks or operations.

Single Scan Test Mode

A diagnostic mode in programmable controllers where the system executes one program scan, useful for troubleshooting and testing.

On-Line Program Mode

Refers to a state where a device, such as a computer or PLC, can be programmed and controlled in real-time while connected to a network or system.

Contact Histogram

A graphical representation that displays the distribution of contact points or events over a specified time period.