MNCs Can Use Short-Term Foreign Financing to Reduce Their Exposure

question 31

Multiple Choice

MNCs can use short-term foreign financing to reduce their exposure to exchange rate fluctuations.For example,if an American-based MNC has ____________ in Algerian dinars,it could borrow ___________,resulting in an offsetting effect.

• A) payables;dinars
• B) receivables;dinars
• C) payables;dollars
• D) receivables;dollars

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Definitions:

Spend Map

A tool or document used in procurement and supply chain management to visualize and analyze an organization's spending patterns, helping with strategic planning and savings identification.

Item Substitution

The practice of replacing one item with another, typically similar item, often due to availability issues or cost benefits.

Environmental Strategies

Approaches adopted by businesses to minimize their ecological footprint and enhance sustainability through processes, products, or services.

Source Reduction

Efforts made to reduce the amount of waste created by altering the design, manufacture, or use of products and materials.