Which of the following statements increases the complexity of the manager's task in a multinational corporation?
A) The currency values of different countries in which a firm operate experience fluctuations.
B) Cash flows in various parts of a multinational corporate system are often denominated in the same currencies.
C) All the countries in which a firm operates have uniform political and economic institutions.
D) The management personnel of a firm in different countries are fluent in English and several other languages.
E) No nation can place constraints on the transfer of corporate resources.

Question

Quizplus · Accepted Answer

The fluctuations in currency values increase the complexity of financial management tasks for the manager of a multinational corporation. These fluctuations can affect the company's profitability, cash flows, and financial reports. Therefore, the manager needs to have extensive knowledge of global foreign exchange markets and risk management strategies to navigate these challenges and make informed decisions.

Which of the Following Statements Increases the Complexity of the Manager's