If the Currency in Which Costs of an MNC Are

question 22

Multiple Choice

If the currency in which costs of an MNC are denominated rises in value,the operating cash flow of the MNC may be adversely affected because:

• A)its cost rise and its competitive position improves but not enough to offset the increase in costs.
• B)its cost increase and its competitive position deteriorates.
• C)its costs decrease and its competitive position deteriorates more than it saves for the decrease in costs.
• D)its costs decrease and its competitive position deteriorates.

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Definitions:

Thought processes

The mental activities involved in understanding, reasoning, problem-solving, and decision-making.

Horizontal décalage

A concept in Piaget's theory referring to the observation that children can acquire similar cognitive skills at different times across different domains.

Multitasking

Cognitive processes involving attending and responding to multiple sources of information simultaneously.

Secular trend

A long-term pattern or trend that can be observed over several generations or periods.