Cash Flow Diagrams for MNCs
An MNC that engages in international trade, its international cash flows result from either paying for imported supplies or receiving payment in exchange for products that its exports.
00 An MNC that engages in international licensing, franchising, or joint ventures, the expenses incurred from transferring technology for funding partial investment in a franchise or joint venture.
These arrangements generate cash flows to the MNC in form of fees for services it provides.
This diagram reflects an MNC that engages in direct foreign investment.