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

question 20

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:

Additional Work

Tasks or services that are added to the original scope of a contract or agreement, often requiring a modification to terms and additional payment.

Preexisting Duty

An obligation that one party is already legally required to perform, which cannot serve as consideration for a new contract.

Highlights

Key points or significant details that stand out within a larger context.

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.