Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better economic and political environment (in the U.S.) B.Less expensive labor C.Tax incentives D. To achieve international diversification

Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. O Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

If a U.S.-based MNC focused completely on exporting, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time. Group of answer choices True False

A U.S. firm will be ________ by dollar _______ if its expenses are more susceptible to exchange rate movements than its revenue. A. unaffected; weakens B. benefited; strengthens C. benefited; weakens D. unaffected; strengthens

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Can companies take advantage of favorable exchange or tax rates to make purchases in different currencies/countries? If yes, how and why?

Reasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local ing-hiet equatitions

Multinational companies are exposed to complex management and allocation of their resources. A multinational company's cash management, credit management, inventory management, and so on, need to have several additional elements factored in compared with those of a purely domestic corporation. Multinational Inventory Management Decisions related to amount of investment in inventory and inventory policy need to factor in the following: * Exchange rates . Possibility of import and export quotas or tariffs Tax consequences Possibility of at-sea storage Consider this case: Streep Inc. is a U.S.-based multinational firm with a subsidiary in Switzerland. Last week, Streep created its periodic financial statements, and the subsidiary had SFr 80,000 worth of inventory on its balance sheet. Streep translated the value of inventory using the spot exchange rate at that time of $0.8153 / SFr and recorded that value on its consolidated balance sheet. However, this week the exchange rate changed…