Which of the following is not one of the major reasons for MNCs to forecast exchange rates?
A) to decide in which foreign market to invest excess cash
B) to decide where to borrow at the lowest cost
C) to determine whether to require a subsidiary to remit funds or invest them locally
D) to speculate on exchange rate movements

Question

Quizplus · Accepted Answer

Speculating on exchange rate movements is not one of the major reasons for MNCs to forecast exchange rates. The other options listed are all valid reasons for MNCs to forecast exchange rates.

Which of the Following Is Not One of the Major