Multilateral netting is the means by which subsidiaries and affiliates charge each other as they exchange goods and services.

Question

Quizplus · Accepted Answer

Multilateral netting refers to a process used by multinational corporations to consolidate and net out payments between their subsidiaries and affiliates, reducing the number and volume of cross-border transactions and thus minimizing transaction costs and foreign exchange exposure. It is more about managing inter-company payments efficiently rather than how they charge each other for goods and services.

Multilateral Netting Is the Means by Which Subsidiaries and Affiliates