According to your authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because:
A) of a lack of competition among international firms.
B) of an offset to cash flow variability caused by exchange rate variability.
C) returns are not perfectly correlated between countries.
D) none of the above

Question

Quizplus · Accepted Answer

Diversifying cash flows internationally can reduce variability because returns from different countries are not perfectly correlated, allowing for risk reduction through diversification.

According to Your Authors, Diversifying Cash Flows Internationally May Help