MNCs Face Some Issues in Arranging Financing That Domestic Organizations

question 44

Multiple Choice

MNCs face some issues in arranging financing that domestic organizations do not face.One of these issues is that MNCs:

• A)deal in a variety of foreign currencies and MNCs incur losses when those foreign currencies are converted into the home currency of the MNC.
• B)are subject to competition in foreign countries that is different than the competition faced by domestic firms.
• C)are vulnerable to political and economic situations in the countries where they operate,and these situations can adversely affect the cash flow of an MNC.
• D)cannot borrow money domestically as easily as domestic organizations can borrow money domestically.

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Definitions:

Personality Traits

Characteristics that form an individual's distinctive character, influencing their behavior and emotional patterns.

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The behavior or response of a person or group as a result of outside or inside forces.

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An individual’s belief in their capacity to execute behaviors necessary to produce specific performance attainments.