The Local Currency Should Be Used for Performance Evaluation Purposes

question 40

Multiple Choice

The local currency should be used for performance evaluation purposes if

• A) the MNE leaves considerable autonomy to the foreign operation.
• B) sales are made in the foreign currency.
• C) the foreign currency is relatively stable.
• D) the local manager is given authority and responsibility to hedge foreign exchange differences.

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Definitions:

Valuations

The process of determining the current worth of an asset or a company, often used in financial analysis and investment decisions.

Private Companies

Businesses that are owned privately by individuals, groups, or families, and whose shares are not traded publicly on stock exchanges.

Standard Methodologies

Established, regular procedures or techniques used across a particular industry or field.

Deal-Making Process

The series of steps involved in negotiating and finalizing agreements between parties, often in business contexts.