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The internal equity financing of the Multinational Subsidiary which retains and reinvests its own earnings. Internal equity. Financing is a type of firm-specific advantage (FSA) along with other traditional FSAs in innovation research and development,,, Brands and management skills. It also reflects subsidiary-level financial management decision-making
.The sum of internal and external funds from all sources represents
the total new financing available for investment in. Business assets -
both physical (,,, land buildings equipment and inventories) and
financial (claims in the form, of cash. Government and corporate
The amounts so designated will
differ depending on the degree of netness or grossness, desired. "External, financing"Will refer to funds obtained
through new capital stock issues (external equity financing) and
through various types of. Loans e.g. Bond issues,,,,, mortgages bank loans
trade, credit etc. '
Internal sourcing means the funds come from related. Firms. "External sourcing." means the funds come from unrelated firms or investors. Internal financing types include: (1). Funds from the parent company;(2) funds from sister subsidiaries; (3) subsidiary borrowing with parent guarantees. External financing types: (1 borrowing.) From sources in the parent country; (2) borrowing from sources outside the parent country; and (3) raising equity locally.
type financing includes:? (1) funds from the parent company;(2) funding from the subsidiary sister; (3) loans to subsidiaries are guaranteed parents. And the type of external financing, which is different from the interal financing as follows: (1) loans from sources in the mother country;(2) loans from sources outside the country parents; and (3) to raise funds in the country.
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