Portfolio Diversification of Domestic Firms Reduces Risk Because Cash Flows

question 43

True/False

Portfolio diversification of domestic firms reduces risk because cash flows are not perfectly correlated. The same reasoning is often argued for MNEs diversifying into international markets.

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Definitions:

Unfair Labor Practice

Actions by employers or unions that violate the rights of employees or the provisions of labor laws.

Taft-Hartley Act

A 1947 U.S. law that restricts the activities and power of labor unions, including prohibiting certain types of strikes and requiring union leaders to swear they were not communists.

Section 9

In the context of labor relations, often refers to a portion of the National Labor Relations Act concerning the representation of employees for purposes of collective bargaining.

Union Satisfaction

Refers to the level of contentment among members of a labor union, typically regarding working conditions, wages, and the representation provided by the union leadership.