Unbundling allows a multinational firm to recover funds from subsidiaries without piquing host country sensitivities over large dividend drains.

Question

Quizplus · Accepted Answer

Unbundling refers to the process of breaking a complex product or service into its components or smaller parts. In the case of multinational firms, unbundling allows them to transfer funds from subsidiaries without triggering concerns in the host country over large dividend outflows. This helps the firm to recover funds while keeping a low profile and avoiding any sensitivity or resistance from the host country governments or stakeholders. Therefore, the statement is true.

Unbundling Allows a Multinational Firm to Recover Funds from Subsidiaries