According to Your Authors, Diversifying Cash Flows Internationally May Help

question 8

Multiple Choice

According to your authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because:

• A) of a lack of competition among international firms.
• B) of an offset to cash flow variability caused by exchange rate variability.
• C) returns are not perfectly correlated between countries.
• D) none of the above

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Definitions:

Declarative Memory

A type of long-term memory that allows individuals to consciously recall facts and events.

Semantic Memory

A type of long-term memory that involves the capacity to remember meanings, concepts, and factual information.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.

Semantic

Relating to meaning in language or logic, especially the meanings of words and phrases in context.