Multinational budgeting is more complex than budgeting in a domestic environment due to the possibility of:
A)exchange rate fluctuations
B)sophisticated techniques used by multinationals such as forward, future, and options contracts
C)different political, legal, and economic environments faced by multinationals
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Multinational budgeting involves dealing with multiple currencies, and thus the possibility of exchange rate fluctuations which can greatly impact the budget. Multinationals may use sophisticated techniques such as forward, future, and options contracts to manage this risk. In addition, they must consider the different political, legal, and economic environments they operate in, which can also impact the budgeting process. Therefore, all of the answers are correct.

Multinational Budgeting Is More Complex Than Budgeting in a Domestic