If an MNC Expects Cash Inflows of Equal Amounts in Two

question 68

Multiple Choice

If an MNC expects cash inflows of equal amounts in two currencies, and the two currencies are ____ correlated, the MNC's transaction exposure is relatively ____.

• A) negatively; high
• B) negatively; low
• C) positively; low
• D) none of the above

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Definitions:

Collective Self-Esteem

Describes the self-evaluation of one's social group or community as a part of an individual's self-worth.

Individual Qualities

Personal attributes or characteristics that distinguish one person from another.

Tendency To Affiliate

The innate or acquired propensity of individuals to seek out, form, or maintain social connections and relationships with others, often heightened during periods of stress or uncertainty.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs in relationships.