Which of the Following Statements About Working Capital Management in Multinational

question 61

Multiple Choice

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

• A)Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks.
• B)The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies.
• C)The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts.
• D)Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits.
• E)Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

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Definitions:

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles, considering the impact of decisions on stakeholders.

Actor's Perspective

An approach or viewpoint from the individual involved in an action or event, emphasizing personal experience and agency.

Ethical

Ethical refers to principles that define behavior as right, good, and proper, often applied in moral philosophy or professional standards.

Ethical Relativism

The belief that morals are not absolute but vary with different societies and cultures.