MNCs commonly consider establishing a new foreign subsidiary to replace their exporting business because it allows them to avoid exchange rate risk.

Question

Quizplus · Accepted Answer

Establishing a foreign subsidiary involves many considerations, but avoiding exchange rate risk is not typically the primary reason; it's more about market presence, local production advantages, and circumventing trade barriers. Exchange rate risk can affect both exporting and foreign subsidiaries.

MNCs Commonly Consider Establishing a New Foreign Subsidiary to Replace