An MNC Can Avoid Translation Exposure If Its Earnings Are

question 41

True/False

An MNC can avoid translation exposure if its earnings are not remitted by the foreign subsidiary to the parent.

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Definitions:

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, typically expressed as an annual rate.

Consumes

The action of using up a good or service to satisfy needs or wants.

Consumption

The process by which goods and services are used up by consumers, representing the end phase of the economic cycle.

Income

Financial gains, customarily on a constant basis, from vocational activities or investments.