Multinational financial management requires that
A) The effects of changing currency values be included in financial analyses.
B) Legal and economic differences need not be considered in financial decisions because these differences are insignificant.
C) Political risk should be excluded from multinational corporate financial analyses.
D) Traditional U.S. and European financial models incorporating the existence of a competitive marketplace not be recast when analyzing projects in other parts of the world.
E) Cultural differences need not be accounted for when considering firm goals and employee management.

Question

Quizplus · Accepted Answer

Multinational financial management requires that the effects of changing currency values be included in financial analyses. This is because currency fluctuations can have a significant impact on the financial performance of a multinational corporation. Therefore, it is important to consider the currency risk and hedge against it to minimize potential losses. Legal and economic differences, political risk, and cultural differences are also important factors to consider, but they should not be excluded from financial decisions.

Multinational Financial Management Requires That