According to Your Authors, Diversifying Cash Flows Internationally May Help

question 8

Multiple Choice

According to your authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because:

• A) of a lack of competition among international firms.
• B) of an offset to cash flow variability caused by exchange rate variability.
• C) returns are not perfectly correlated between countries.
• D) none of the above