MNE cash flows may be sensitive to changes in which of the following?
A)Exchange rates.
B)Interest rates.
C)Commodity prices.
D)all of the above

Question

Quizplus · Accepted Answer

Multinational enterprises (MNEs) operate across different countries and are thus impacted by various factors that affect cash flows, such as exchange rates, interest rates, and commodity prices. Changes in exchange rates can affect the value of their foreign assets and liabilities, impacting profits and cash flows. Interest rates can impact MNEs' borrowing costs and investment decisions. Commodity prices can impact the cost of raw materials and ultimately impact the cash flows of MNEs. Therefore, all of the above choices are correct.

MNE Cash Flows May Be Sensitive to Changes in Which