QUESTION 5 Please mark the only statement below that DOES NOT characterize the financial operations of a
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QUESTION 5
Please mark the only statement below that DOES NOT characterize the financial operations of a multinational corporation
a. | Gaining economies of scale in production; gaining access to lower labor costs; shifting taxation around the globe are possible reasons encouraging multinationals to invest abroad | |
b. | While multinationals gain new market access by establishing affiliates in emerging countries, this exposes the firm to country risk and political risk, incuding capital controls and nationalization of assets | |
c. | Multinationals always avoid translation risk by only issuing debt denominated in the currency of the country where the headquarters are located | |
d. | Multinational corporations can finance their affiliates using intercompany loans |
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