Internal Sources of Funds for a Foreign Subsidiary of a MNE

question 22

True/False

Internal sources of funds for a foreign subsidiary of a MNE may come from the parent company but not from a sister subsidiary. Funding from sister subsidiaries are considered external funding.

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Definitions:

Average Fixed Cost

The fixed costs, such as rent or salaries, divided by the number of units produced, calculated over a period of time.

Mixers

Devices or software used for combining, modifying, or creating audio or other media content.

Average Total Cost

The total cost of production divided by the number of units produced, including both fixed and variable costs.

Range of Output

Refers to the variety of products or services produced by a company or industry.