Which of the following statements is true?
A)The currency values among different countries rarely fluctuate.
B)Cash flows of various parts of a multinational corporate system are always denominated in the same currencies.
C)Institutional differences among countries can cause significant problems in coordination of subsidiaries.
D)No nation places constraints on the transfer of corporate resources.
E)Within similar geographic regions, different countries have uniform cultural heritages that shape values and influence the role of business in the society.

Question

Quizplus · Accepted Answer

Institutional differences among countries, such as differences in legal systems, accounting standards, and cultural norms, can make it difficult to coordinate the operations of subsidiaries in multinational corporations. A, B, and D are not true statements as currency values do fluctuate, cash flows can be denominated in different currencies, and nations may place constraints on the transfer of corporate resources. E is also not true as different countries even within the same geographic region can have varying cultural heritages that shape values and influence the role of business.

Which of the Following Statements Is True