A subsidiary will normally have a more difficult time forecasting future outflow payments if its purchases are international rather than domestic.

Question

Quizplus · Accepted Answer

International purchases can be subject to currency fluctuations, tariffs, customs duties, and other international trade costs that can make it harder to forecast future outflow payments accurately. Domestic purchases are generally more stable and predictable, making it easier to forecast future payments.

A Subsidiary Will Normally Have a More Difficult Time Forecasting