Which of the Following Statements Is True About Multinational Working

Multiple Choice

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

A) Exchange rate changes influence the credit policies of multinational companies.
B) Foreign governments often encourage cash to be taken out of their countries.
C) If the probability of expropriation is large, the inventory holdings will be maximized.
D) Most multinational corporations prefer banking with the local banks where they operate.
E) The political and legal environments of foreign countries are conducive to collect defaulted accounts.