Question

In 250 words or more, What would be the best strategy for a large multinational when faced with vast swings in the value of the U.S. dollar?

(Please type, not write as it is hard to understand people's handwriting)

Answer 1

When faced with vast swings in the value of US dollars the best strategy for multinationals would be to concentrate in a country where the currency is more stable . Since a more stable currency ensures steady profits and business , the stock prices does not fluctuate much and investment flow does not get disrupted . When US dollar value changes suddenly it is quite unpredictable and can change the stock value of a company suddenly . Multinational companies , as the name suggests , operate in various nations . So the best strategy for a large multinational company in such a situation is to invest and expand more in a country where the currency is more stable .