What are the main forms of intra TNC capital flows?

Updated on Financial 2024-02-28
1 answers
  1. Anonymous users2024-02-06

    Summary. The funds of multinational corporations generally come from four aspects: (1) funds within the corporate group.

    includes undistributed profits and depreciation** of each operating entity within the corporate group; Funds provided by a parent company within a group of companies to a subsidiary, or a subsidiary to its subsidiary. (2) Funds provided by banks, financial institutions, capital markets and relevant institutions in the parent company's home country.

    This includes borrowing from banks and financial institutions by the parent company or subsidiary; The parent company or subsidiary issues valuable in the domestic capital market**; Special projects for the parent company or subsidiary to obtain credit from relevant institutions in the country and promote outward direct investment. (3) Funds provided by banks, financial institutions, ** institutions, etc. of the host country.

    Including: loans to banks and financial institutions in the host country of the subsidiary, issuance of negotiable bonds, etc. (4) Funds of the international capital market and relevant organizations, including:

    borrowing from third-country banks or in third-country capital markets**** and bonds; borrowing from international capital markets; Borrowing money from relevant international economic organizations.

    What are the main aspects of capital of multinational companies?

    The funds of multinational corporations generally come from four aspects: (1) funds within the corporate group. includes undistributed profits and depreciation** of each operating entity within the corporate group; Funds provided by the parent company of the company to the subsidiary, or the subsidiary, to its subsidiary.

    (2) Funds provided by banks, financial institutions, capital markets and relevant institutions in the parent company's home country. This includes borrowing from banks and financial institutions by the parent company or subsidiary; The parent company or subsidiary issues valuable in the domestic capital market**; Special projects for the parent company or subsidiary to obtain credit from relevant institutions in the country and promote outward direct investment. (3) Funds provided by banks, financial institutions, ** institutions, etc. of the host country.

    Including the following: loans to the host country banks and financial institutions of the subsidiary, issuance of valuable **, ** bonds, etc. (4) Funds of the international capital market and relevant organizations, including:

    borrowing from third-country banks or in third-country capital markets**** and bonds; borrowing from international capital markets; Borrowing money from relevant international economic organizations.

    Hope mine is helpful to you, oh thanks.

    Please elaborate on the motivations for TNCs' transfers**.

    a.Reduced tax bAllocation of funds cRisk avoidance shouting and evasion of control DGain the advantage of competing for the market, supporting the new companyAdjust the profit level of the lead and the bright section.

    Hope mine is helpful to you, oh thanks.

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