Which of the Following Statements About Multinational Working Capital Management

question 49

Multiple Choice

Which of the following statements about multinational working capital management is correct?

• A)Exchange rate changes can greatly influence the credit policies of multinational companies.
• B)Foreign governments generally do not restrict the amount of cash multinational corporations can return to their home countries.
• C)Multinational companies hold larger-than-normal amounts of inventory in countries where the chances of expropriation are high.
• D)Most multinational corporations prefer banking with the local banks where they operate rather than with mega international banks.
• E)The political and legal environments of many foreign countries are more helpful to multinational corporations in the collection of credit sales than in the United States.

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Definitions:

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Great Compromise

The agreement that large and small states reached during the Constitutional Convention of 1787 that in part defined the legislative structure and representation each state would have under the United States.

Three-Fifths Compromise

An agreement made during the 1787 Constitutional Convention stating that three-fifths of the enslaved population would be counted for determining taxation and representation in Congress.

Philadelphia Convention

The gathering in 1787 where the Constitution of the United States was framed and adopted by its original colonies.