Domestic firms tend to make GREATER use of financial derivatives than MNEs because they can bear the greater risk presented by these financial instruments.

Question

Quizplus · Accepted Answer

This statement is not accurate. In fact, MNEs are typically larger and more diversified than domestic firms, which means they are better equipped to handle risk. Therefore, MNEs are more likely to use financial derivatives to manage their exposure to risk.

Domestic Firms Tend to Make GREATER Use of Financial Derivatives