An MNC seeking to reduce transaction exposure with a strategy of leading and lagging
A)can probably employ the strategy more effectively with intra firm 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 options

Question

Quizplus · Accepted Answer

Leading and lagging strategy involves delaying or accelerating payments to manage transaction exposure. This strategy is more effective with intra-firm payables and receivables as the MNC has more control over the timing of payments. With customers or outside suppliers, the MNC may not be able to dictate the payment terms and may also risk damaging relationships by delaying payments. Therefore, option A is the best choice.

An MNC Seeking to Reduce Transaction Exposure with a Strategy