Internal sources of funds for a foreign subsidiary of a MNE may come from the parent company but not from a sister subsidiary. Funding from sister subsidiaries are considered external funding.

Question

Quizplus · Accepted Answer

Internal sources of funds for a foreign subsidiary of a MNE may come from both the parent company and sister subsidiaries. Funding from parent company and sister subsidiaries are considered internal funding. External funding would come from sources outside the MNE, such as banks or investors.

Internal Sources of Funds for a Foreign Subsidiary of a MNE