When MNCs transfer funds among foreign units to earn higher risk-adjusted yields on excess funds,we say they are conducting

Question

Quizplus · Accepted Answer

Financial arbitrage involves transferring funds to earn higher risk-adjusted yields on excess funds. Regulatory arbitrage involves taking advantage of differences in regulations between countries, while tax arbitrage involves taking advantage of differences in tax rates between countries. Centralization of fund management involves consolidating and managing financial resources centrally.

When MNCs Transfer Funds Among Foreign Units to Earn Higher