Which of the following is a strategy than an MNC might use when the host country where a subsidiary is located imposes restrictions blocking the transfer of funds from the country?
A) Instruct the subsidiary to set up a research and development division to use funds within the host country.
B) Use transfer pricing in a manner that will increase the expenses incurred by the subsidiary.
C) Instruct the subsidiary to obtain financing from a local bank in the host country.
D) All of these are strategies that an MNC might use when the host country where a subsidiary is located imposes restrictions blocking the transfer of funds from the country.
Correct Answer:
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