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Lynde Co . is a U . S . - based MNC with a large subsidiary in the Philippines fi nanced with equity from the
Lynde Co is a USbased MNC with a large subsidiary in the Philippines fi nanced with equity from
the parent. In response to news about a possible
change in the Philippine government, the subsidiary revised its capital structure by borrowing from
local banks and transferring the equity investment
back to the US parent. Explain the likely motive
behind these actions.
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