An MNC's cash flows are likely to be less volatile if its percentage of foreign sales is ____ and the number of foreign countries it sells products to is ____.
A) high; large
B) high; small
C) low; small
D) high; large.

Question

Quizplus · Accepted Answer

DA diversified portfolio of foreign sales (high percentage of foreign sales across a large number of countries) can reduce the volatility of cash flows due to the spreading of risk across different markets.

An MNC's Cash Flows Are Likely to Be Less Volatile