______ from the subsidiary to the parent is still the MOST important method of transferring funds in the MNC. A)Parallel loans B)Leading and laggng C)Dividends D)Credit rationing

Question

Quizplus · Accepted Answer

Dividends from the subsidiary to the parent company are the most important method of transferring funds in an MNC because it provides a return on investment to the parent company while also allowing the subsidiary to retain some funds for its own operations. Parallel loans and leading and lagging transactions are methods of managing foreign exchange risk, while credit rationing refers to a restriction on the availability of credit to borrowers.

______ from the Subsidiary to the Parent Is Still the MOST