MNCs May Be Able to Lock in a Lower Cost

question 17

Multiple Choice

MNCs may be able to lock in a lower cost by financing in a low-interest-rate foreign currency if they have:

• A) future cash inflows in that foreign currency.
• B) future cash outflows in that foreign currency.
• C) offsetting future cash inflows and outflows in that foreign currency.
• D) no other cash flows in that foreign currency.
• Answer Key

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Definitions:

Consequences

Consequences refer to the results or outcomes that naturally follow from an action, behavior, or decision.

Barriers

Obstacles that impede progress, communication, or achievement, which can be physical, psychological, or systemic in nature.

Communication

The act of transferring information from one place, person, or group to another.

Heartfelt Communication

A form of communication that is authentic, honest, and empathetic, aiming to build genuine connections and mutual understanding between individuals.