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If revenues and costs are equally sensitive to exchange rate movements, MNCs may reduce their economic exposure by restructuring their operations to shift the sources of costs or revenues to other locations so that:

a. cash inflows exceed cash outflows in each foreign currency.

b. cash outflows exceed cash inflows in each foreign currency.

c. cash inflows match cash outflows in each foreign currency.

d. none of the above

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9414070

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