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Imagine you are the CEO of a multinational company that operates in several countries. You are considering expanding your operations into a new country where
Imagine you are the CEO of a multinational company that operates in several countries. You are considering expanding your operations into a new country where the economy is currently experiencing high inflation. How might this decision impact your company's ability to earn an adequate rate of return? Question 11 options: Inflation reduces the value of debt, making it easier for companies with high levels of debt to make regular payments. High inflation is likely to lead to price wars in mature industries, so it will be more difficult to earn a profit Inflation has no direct impact on a company's ability to earn an adequate rate of return. High inflation creates opportunities for increased sales overseas, which will help your company earn a higher rate of return. Inflation makes the future less predictable, which may make companies less willing to invest and ultimately depress economic activity
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