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:

Long-run Supply Curve

A graphical representation showing the relationship between market price and the amount of goods supplied by producers, considering all factors of production can be varied.

Competitive Industry

An industry with many firms competing against each other, with no single firm dominating the market.

Relevant Resources

Resources that are directly applicable and valuable in achieving a specific goal or solving a particular problem.

Decreasing-cost Industry

An industry in which costs per unit decrease as the scale of production increases.