Because multinational corporations operate in countries with different languages, different cultures, different political environments, and different economic conditions, _____.
A. the management of their working capital accounts is much simpler than in purely domestic firms.
B. the firms should manage the working capital accounts of their foreign subsidiaries the same as the foreign firms in the countries where their subsidiaries are located manage their working capital accounts.
C. the management of their working capital accounts is not at all similar to the management of working capital accounts in purely domestic firms.
D. their decisions regarding the management of their working capital accounts often significantly affect their abilities to survive in the long-run.
E. their decisions regarding the management of their working capital accounts are concerned with short-run survival only because the firms don't know how long they will be able to operate in the foreign countries before the host governments expropriate their properties.
Answer: D
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