In terms of inventory management, multinational firms ________.
A) have only economic factors to consider, since this is a fixed asset and is minimally affected by political factors
B) must deal with a wide number of factors, including exchange rate fluctuations, tariffs, nontariff barriers, integration schemes such as the EU, and other rules and regulations
C) have only economic factors to consider, since this is a current asset and is minimally affected by political factors
D) have only political factors to consider, since inventory is minimally affected by foreign economic factors

Question

Quizplus · Accepted Answer

Multinational firms must consider a wide range of political and economic factors when managing their inventory. This includes exchange rate fluctuations, tariffs, nontariff barriers, integration schemes such as the EU, and other rules and regulations that can impact supply chain and logistics operations. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they do not provide an accurate representation of the factors that multinational firms need to consider when managing their inventory.

In Terms of Inventory Management, Multinational Firms ________