MNCs can reduce their exchange rate expense

Question

Quizplus · Accepted Answer

All of the above options can help MNCs reduce their exchange rate expense. Bilateral netting involves offsetting payments and receipts between two parties in different currencies, which can reduce the need for currency conversions and minimize exchange rate risk. A centralized cash management system can help MNCs optimize their cash flow and minimize the need for unnecessary currency conversions. Additionally, multilateral netting involves offsetting payments and receipts between multiple parties, which can further simplify financial transactions and reduce currency conversion costs. Therefore, all three options can play a role in reducing exchange rate expenses for MNCs.

MNCs Can Reduce Their Exchange Rate Expense