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Assume That Subsidiaries X and Y of the Same MNC

Question 4

Multiple Choice

Assume that Subsidiaries X and Y of the same MNC oFten trade with each other. Assume that Subsidiary X has excess cash while Subsidiary Y is short on cash. How can Subsidiary X help out Subsidiary Y?​


A) X should lag its payments sent to Y to pay for imports from Y.
B) X should request that Y lead its payments to be sent for goods that Y sent to X.
C) A and B
D) None of the above

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