Exchange rates influence a multinational firm's inventory policy because changing currency values can affect the value of inventory.

Question

Quizplus · Accepted Answer

Exchange rates can impact the value of inventory and can influence a firm's inventory policy. For example, if a multinational firm holds inventory in a foreign currency, a change in exchange rates can affect the value of the inventory. The firm may need to adjust its inventory policy to account for currency fluctuations and minimize potential losses.

Exchange Rates Influence a Multinational Firm's Inventory Policy Because Changing