Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following does NOT explain the decision of multinational corporations (MNCs) to forecast exchange rates? The MNC has operations in all member
Which of the following does NOT explain the decision of multinational corporations (MNCs) to forecast exchange rates? The MNC has operations in all member countries in the Eurozone, but has no operation out the Eurozone. Forecasting exchange rates can help MNCs determine whether they should hedge foreign exchange risks or not. Multinational corporations that issue bonds to secure long-term funds may consider denominating the bonds in foreign currencies. MNCs sometimes have a substantial amount of excess cash available for a short time period. Forecasting exchange rates can help MNCs decide in which currency they can best deposit the excess cash and earn additional cash flows. When an MNC assesses whether to invest funds in a foreign project, it takes into account that the project may periodically require the exchange of currencies.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started