In Terms of Financial Management Tasks That Are Key to MNE

question 18

Multiple Choice

In terms of financial management tasks that are key to MNE success, which of the following comes immediately after the task of raising funds for the firms?

• A)assesses the financial attractiveness of major investment projects, such as foreign expansion
• B)determines the ideal long-term mix of financing for the firm's international operations
• C)learns to operate in a global environment with diverse accounting practices and international tax regimes
• D)administer funds passing in and out of the firm's value-adding activities

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Definitions:

Penetration Pricing

A marketing strategy where a product is priced lower than its competitors in order to attract customers and gain market share.

Price Skimming

A pricing strategy involving setting high prices at the launch of a new product to maximize profits from customers willing to pay more, before reducing the price over time.

Consumer Credit

Credit extended by retailers to the ultimate customers for the purchase of products or services.

Business Credit

A measure of a company's ability to obtain goods, services, or funds based on the promise to pay in the future.