One Technique a Multinational May Use to Avoid the Blocked

question 26

Multiple Choice

One technique a multinational may use to avoid the blocked fund strategy of a foreign nation is for the parent to lend funds to the affiliate.The loan is known as a ________ loan.

• A) parallel
• B) back-to-back
• C) fronting
• D) transfer pricing

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Definitions:

Individual

Pertaining to or characteristic of a single, particular person or thing.

Demonstrates Courtesy

The display of politeness, respect, and consideration for others in one's actions or words.

We-viewpoint

The we-viewpoint is a communication strategy that emphasizes inclusivity and team-oriented perspectives, often used to create a sense of unity and shared goals.

Goodwill

An intangible asset that represents the value of a business's reputation, brand, and customer relations.