Threat of Expropriation Creates an Incentive for the Multinational Firm

question 38

True/False

threat of expropriation creates an incentive for the multinational firm to minimize inventory holdings in certain countries and to bring in goods only as needed.

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Definitions:

Cash Manager

is a professional responsible for overseeing and managing a company’s cash flow, ensuring there are sufficient funds available to meet the day-to-day operations.

Short-Term Investment

Investments that are made to hold for a short period, usually less than one year, with the aim of selling for a profit in the near term.

Borrowing Activities

The actions undertaken by an individual or organization to obtain funds from external sources, typically involving loans or debt issuance.