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As part of MNCs' global strategies, they tend to take into account the presence of imperfect regulatory arbitrage around the world. Regulatory Arbitrage arises when

As part of MNCs' global strategies, they tend to take into account the presence of imperfect regulatory arbitrage around the world. Regulatory Arbitrage arises when subsidiary profits vary due to local regulations such as: Question 28 Answer a. The presence of a deregulated financial market b. Government price controls c. Central banks interest rate ceiling policies d. Union wage pressures and Government price controls e. More than one of these statements

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