Credit policy for multinational firms is generally more risky due in part to the additional consideration of exchange rates and also due to uncertainty regarding the credit worthiness of many foreign customers.

Question

Quizplus · Accepted Answer

Multinational firms have to consider exchange rate fluctuations which increase the risk associated with credit policy. Additionally, creditworthiness of foreign customers may not be as well-established as domestic customers, leading to uncertainty and further risk.

Credit Policy for Multinational Firms Is Generally More Risky Due