Intracorporate fund transfers enable MNEs to access cash from subsidiaries through royalty payments, transfer pricing, and multilateral netting.

Question

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Intracorporate fund transfers, such as royalty payments, transfer pricing, and multilateral netting, are mechanisms that multinational enterprises (MNEs) use to move funds across borders within the corporation, allowing them to access cash from their subsidiaries. These methods help MNEs manage their global cash flow more efficiently.

Intracorporate Fund Transfers Enable MNEs to Access Cash from Subsidiaries