When an MNC Finances with a Floating-Rate Loan in a Currency

question 29

Multiple Choice

When an MNC finances with a floating-rate loan in a currency that matches its long-term cash inflows, the MNC is exposed to ____ risk.

• A)interest rate
• B)credit
• C)exchange rate
• D)none of the above

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Definitions:

Designers' Approach

The methodology or standpoint from which designers tackle problems and projects, influenced by their creative process, style, and values.

Espoused Needs

The explicitly stated desires or requirements that individuals or organizations profess to be important.

Destabilize Stage

A phase or situation where existing structures or systems begin to lose their stability or coherence, potentially leading to significant change or transformation.

Brand Ambidexterity

The ability of a brand to balance and successfully pursue both exploration of new opportunities and exploitation of existing ones.