Fronting Loans: A loan between a parent company and a foreign subsidiary that is channeled through a financial intermediary.
Common Market: A group of countries committed to the pursuit of a common external trade policy.
Deferral Principle: Parent companies are not taxed on the income of a foreign subsidiary until they actually receive a dividend from that subsidiary.
Turnkey Project: A project in which a firm agrees to set up an operating plant for a foreign client and hand over the “key” when the plant is fully operational.
