12.15 Moving money across borders
This section of your textbook is succinct and there is no point in repeating it in detail here, so we will begin with a diagram and refer briefly to those topics mentioned by Hill (2005). Figure 12.3 depicts the fund moving activities of a fairly typical MNE, the Swiss company Nestlé. Accept it as a general guide; the subsequent discussion is not tied to the diagram.
Note: The relationship between Nestlé and its Swiss affiliates is complex. The diagram is accurate, but for our purposes please accept that profit remittances (dividends) are paid to Nestlé corporate headquarters and that the arrows point to the home office.
Figure 12.3 Some methods of moving funds in the MNE
Source: Grosse and Kujawa 1995, p. 406.
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