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