US-Based MNCs Whose Foreign Subsidiary Generates Large Earnings May Be

question 26

True/False

U.S.-based MNCs whose foreign subsidiary generates large earnings may be able to offset exposure to exchange rate risk by issuing bonds denominated in the subsidiary's local currency.

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Definitions:

Amino Acids

Organic molecules that unite to create proteins, acting as the foundational elements of life.

Nucleotides

The basic building blocks of nucleic acids, like DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

Codon

Sequence of three nucleotides in mRNA or DNA that codes for a specific amino acid in a protein.

mRNA

Messenger RNA, a form of RNA that carries genetic information from the DNA to the ribosome, where it can be translated into a protein.