________ allows a multinational firm to recover funds from subsidiaries without piquing host country sensitivities over large dividend drains.
A)Unbundling funds
B)Bundling funds
C)Coordinating funds
D)none of the above

Question

Quizplus · Accepted Answer

Unbundling funds refers to separating or isolating the revenue generated by a subsidiary from the parent company's funds. This approach allows the multinational firm to recover funds without attracting negative attention from host countries concerned about large dividend drains. By unbundling the funds, the multinational firm can demonstrate that the funds repatriated are linked to the specific subsidiary's contribution to the multinational's overall performance, rather than a drain on the host country's resources.

________ Allows a Multinational Firm to Recover Funds from Subsidiaries