The value of the multinational financial system is NOT based on the ability to take advantage of
A)tax arbitrage
B)financial market arbitrage
C)regulatory system arbitrage
D)differing political systems between subsidiaries

Question

Quizplus · Accepted Answer

The value of the multinational financial system is based on the ability to efficiently allocate resources across different locations, benefit from economies of scale, and access different markets. While tax, financial market, and regulatory system arbitrage can be strategies employed by companies to increase profits, they are not the sole basis for the value of the multinational financial system. While differences in political systems may affect a company's operations, it is not a reason for the existence of the multinational financial system.

The Value of the Multinational Financial System Is NOT Based