Which of the following statements about multinational working capital management is correct?

Question

A. Exchange rate changes can greatly influence the credit policies of multinational companies.
B. Foreign governments generally do not restrict the amount of cash multinational corporations can return to their home countries.
C. Multinational companies hold larger-than-normal amounts of inventory in countries where the chances of expropriation are high.
D. Most multinational corporations prefer banking with the local banks where they operate rather than with mega international banks.
E. The political and legal environments of many foreign countries are more helpful to multinational corporations in the collection of credit sales than in the United States.

Answer 1

Answer: A