What are the major sources of external funds for an MNE's normal operations? Why do MNEs use offshore financial centers to raise funds?
What will be an ideal response?
Two major sources of funds external to the MNE's normal operations are debt markets and equity markets. Offshore financial centers such as Bahrain, the Caribbean, Hong Kong, London, New York, Singapore, and Switzerland deal in large amounts of foreign currency and enable companies to take advantage of favorable tax rates. These centers provide an alternative, usually cheaper, source of funding for MNEs so that they don't have to rely strictly on their own national markets.
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The ________ and the Department of Justice must review mergers between large competitors to determine whether the combined firm would be a monopolistic corporation
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