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Because Increased External Financing by a Foreign Subsidiary Reduces the External

question 57

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Because increased external financing by a foreign subsidiary reduces the external financing needed by the parent, such an action will not affect the overall MNC's cost of capital.


Definitions:

Formal Meetings

Formal meetings are structured gatherings with a set agenda, specific objectives, and are often regulated by rules or protocols, usually taking place in professional settings.

Decision Making

The process of identifying and selecting alternatives based on the values and preferences of the decision maker.

Telepresence

Technology that allows a person to feel or appear as if they are present in a location different from their actual one, often used for remote communication or control.

Virtual Meeting

A virtual meeting is a gathering of individuals in different locations using video, audio, and text messaging technologies over the internet to communicate and collaborate in real-time.

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