A major reason why growth-oriented MNEs establish operations abroad is to diversify and minimize risk so that overall corporate cash flows and earnings will be relatively stable.

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The statement is true. Growth-oriented MNEs establish operations abroad to diversify their operations and minimize risks in order to achieve stability in their overall corporate cash flows and earnings. This diversification helps them to exploit growth opportunities in different markets, optimize their production costs, and reduce their vulnerability to economic and political risks in specific countries.

A Major Reason Why Growth-Oriented MNEs Establish Operations Abroad Is