When a Firm Holds Assets in Many Countries

question 69

Multiple Choice

When a firm holds assets in many countries,

• A)the firm's cash flows are internationally hedged.
• B)thus, shareholders of the firm can indirectly benefit from international diversification even if they are not directly holding foreign shares.
• C)thus, shareholders of the firm can directly benefit from international diversification even if they are not directly holding foreign shares.
• D)none of the above

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Definitions:

Interest-Based Negotiation

A negotiation strategy focused on the underlying interests, needs, or desires of the parties involved, rather than on predetermined positions or demands.

Selling Price

Selling price is the amount of money for which a product or service is sold to the consumer.

Interest-Based Negotiation

A negotiation strategy focusing on the underlying interests of the parties involved rather than their initial positions.

Illustrate

To explain or make something clear by using examples, pictures, or diagrams.