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:

Actor-Network

A theoretical and methodological approach within sociology and science and technology studies that emphasizes the agency of both human and non-human entities in the creation of social phenomena.

Micro-Macro

Refers to the analytical frameworks in social science that consider the interplay between individual (micro) and society-wide (macro) phenomena.

Agency-Structure

The ongoing debate and theoretical framework in sociology concerning the extent of an individual's free will (agency) versus the limiting or enabling effects of social structures.

Production And Consumption

The processes of creating goods and services (production) and using or purchasing them (consumption), fundamental to economic systems.