International Inventories Can Be Used by the International Corporation as a Strategic

International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or in hedging against inflation.Which of the following statements is true?

A) By decreasing inventories before an imminent devaluation of a currency instead of holding cash, a corporation may reduce its exposure to devaluation losses.
B) In the case of high inflation, holding small inventories provides an important inflation hedge.
C) If an increase in tax payments outweighs the hedging benefits to a corporation, the firm needs to increase inventories before devaluation occurs.
D) The international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation.