Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. O The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. O Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

Which of the following statements about working capital management in multinational corporations is correct? Multinational corporations can take advantage of the best interest rates available in the international financial markets by using global concentration banks. O The primary reason foreign governments impose import or export quotas and tariffs is to ensure that multinational corporations are able to compete with domestic companies. O The political and legal environments in most foreign countries make it easier for multinational corporations than for domestic companies to collect defaulted credit accounts. Many foreign governments provide multinational corporations that operate in their countries with subsidies to offset exchange rate changes that harm the foreign companies' profits. O Generally, a multinational company faces a lower threat of government expropriation than do domestic companies.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter18: Long-term Debt Financing

Section: Chapter Questions

Problem 1CT

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