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Despite the theoretical elegance of this hypothesis, empirical studies have come to the opposite conclusion. Despite the favorable effect of international diversification of cash flows, bankruptcy risk was only about the same for MNEs as for domestic firms. However, MNEs faced higher costs for each of the following EXCEPT:
Alcohol Consumption
The act of drinking beverages containing ethanol, which can have varying social, cultural, and health impacts depending on the quantity and frequency of consumption.
Cognitive Dissonance
The mental discomfort or stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.
Social Learning
A theory that proposes learning occurs within a social context and that people learn from one another through observation, imitation, and modeling.
Eating Disorder
A mental health condition characterized by unhealthy, obsessive, or disordered eating habits, which negatively impact an individual's physical health and emotional well-being.
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