Credit Policy for Multinational Firms Is Generally More Risky Due

question 15

True/False

Credit policy for multinational firms is generally more risky due in part to the additional consideration of exchange rates and also due to uncertainty regarding the credit worthiness of many foreign customers.

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Definitions:

Kernel of Truth Hypothesis

The notion that stereotypes, while significantly exaggerated, may originate from some element of actual experience or reality.

Stereotypes

Simplified and generalized beliefs or notions held about individuals or groups, often leading to prejudgments without factual basis.

Institutional Discrimination

Systemic policies or practices within organizations or societies that disadvantage certain groups.

Stereotype Threat

The feeling of worry or nervousness in circumstances where an individual might inadvertently validate a negative cliché associated with their societal group.