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Assume a Brazilian subsidiary of a multinational corporation owes an Austrian subsidiary $5 million and the Austrian subsidiary simultaneously owes the Brazilian subsidiary $7 million.

Assume a Brazilian subsidiary of a multinational corporation owes an Austrian subsidiary $5 million and the Austrian subsidiary simultaneously owes the Brazilian subsidiary $7 million. As the result of a settlement, the Austrian subsidiary will make a single payment of $2 million to the Brazilian subsidiary. This situation is an example of what?  briefly explain.

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