CHAP 15 - Q16

16. Multinational working capital management

Multinational working capital management is complicated by differences in business, legal, and economic environments. The following are statements about multinational working capital management.

Choose whether each statement is true or false.

Statement

Political and legal environments make it difficult to collect delinquent accounts from foreign customers. (True or

False)?

Multinational corporations usually invest domestically rather than with international bankers around the world.(True or

False)?

Exchange rates may affect the multinational corporation's inventory policy.(True or

False)?

A strategy to lower property taxes may be to schedule production so that inventory is at its highest on the assessment date.(True or

False)?