Multinational Cash Management

question 49

Multiple Choice

Multinational cash management

• A)is really no different for a MNC than for a purely domestic firm in a closed economy.
• B)concerns itself with the size of cash balances, their currency denominations, and where these cash balances are located among the MNC's affiliates.
• C)concerns itself with the size of cash balances and their currency denominations, but not where these cash balances are located among the MNC's affiliates, since intra-affiliate default risk is not an issue.
• D)none of the above

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Definitions:

Psychological Failure

This term refers to a condition where an individual's mental and emotional state prevents them from achieving their desired goals or functioning effectively.

Principle of Specialization

The Principle of Specialization is a strategy wherein individuals or entities focus on a narrow area of expertise or production to increase efficiency and quality of output.

Unity of Direction

A management principle advocating that teams with the same objective should be directed by one manager and bound by a single plan.

Self-fulfilling Prophecy

A belief or expectation that an individual or group holds about a future event that manifests because the individual or group acts in ways that support the belief or expectation.