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| Author: | Talaga, J. Buch, J. |
| Title: | Credit practices of European subsidiaries of U.S. multinational corporations |
| Journal: | Management International Review
1992 : 2ND QUARTER, VOL. 32:2, p.149-162 |
| Index terms: | CREDIT SUBSIDIARY COMPANIES USA EUROPE MULTINATIONAL COMPANIES |
| Language: | eng |
| Abstract: | Credit practices of French, German and Italian subsidiaries of USA multinationals are studied. Information is presented about the extent of cross-national credit extension; the sources of information used, the criteria used, and the level of consistency in credit extension decisions. It is found generally that subsidiaries do extend credit across national boundaries, that they use different information sources about creditworthiness; that they use different criteria in assessing creditworthiness; and that they are not uniformly consistent in extension of credit, even within the same corporation. Thus, non-USA firms ought to re-examine their credit extension policies. |
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