Bilateral and multilateral netting are devices that allow the MNE to do which of the following?
A) Use its internal corporate network to reposition funds among the operating units without incurring significant transactions costs or running afoul of blockage restrictions.
B) Minimize transactions costs for intracompany payables and receivables management by using accounting entries rather than a physical flow of funds to debit/credit the relevant accounts on the accounting books of each subsidiary involved in the transaction.
C) Circumvent strong foreign exchange and capital restrictions in countries that have these restrictions by flowing only the net payable out of the country or the net receivable into the country.
D) All of the statements above are uses of netting.
E) Only statements a and b are correct.

Question

Quizplus · Accepted Answer

The Answer of Bilateral and multilateral netting are devices that allow the MNE to do which of the following?
A) Use its internal corporate network to reposition funds among the operating units without incurring significant transactions costs or running afoul of blockage restrictions.
B) Minimize transactions costs for intracompany payables and receivables management by using accounting entries rather than a physical flow of funds to debit/credit the relevant accounts on the accounting books of each subsidiary involved in the transaction.
C) Circumvent strong foreign exchange and capital restrictions in countries that have these restrictions by flowing only the net payable out of the country or the net receivable into the country.
D) All of the statements above are uses of netting.
E) Only statements a and b are correct.

Bilateral and Multilateral Netting Are Devices That Allow the MNE