An MNC seeking to reduce transaction exposure with a strategy of leading and lagging
A)can probably employ the strategy more effectively with intrafirm payables and receivables than with customers or outside suppliers.
B)can employ the strategy most easily with customers, regardless of market structure.
C)can employ the strategy most easily with suppliers, regardless of market structure.
D)none of the above

Question

Quizplus · Accepted Answer

Intrafirm payables and receivables involve transactions between different subsidiaries or branches of the same MNC. These transactions can be easily manipulated to lead or lag payments, making it easier for the MNC to reduce transaction exposure. On the other hand, transactions with customers or outside suppliers may be governed by contractual agreements or market forces beyond the control of the MNC, making it harder to lead or lag payments.

An MNC Seeking to Reduce Transaction Exposure with a Strategy