When a host country announces a plan to block funds remitted to the subsidiary's parent, the subsidiary is likely to use a strategy of increasing local debt financing.

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If the host country announces a plan to block funds remitted to the subsidiary's parent, the subsidiary may face a shortage of funds from the parent company. In such a situation, the subsidiary is likely to use a strategy of increasing local debt financing to fulfill its financial requirements. This is because local debt financing is a reliable source of funds that can be accessed easily and quickly without relying on the parent company.

When a Host Country Announces a Plan to Block Funds