Question: Mexico's EFG Inc. was turned down when it tried to borrow money from a U.S. bank. The bank manager suggested that the Mexican parent firm
Mexico's EFG Inc. was turned down when it tried to borrow money from a U.S. bank. The bank manager suggested that the Mexican parent firm deposit money with the U.S. bank's Mexican branch, and the U.S. bank's home office would then lend the money to the EFG's U.S. subsidiary. This type of arrangement is known as a(n Internal funding situation Back-to-back loan Initial public offering (IPO) Venture capital loan American Depository Receipt
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