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.