MIE can use balance of payment for all of the following reasons except predicts...

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Accounting

MIE can use balance of payment for all of the following reasons except

  1. predicts the foreign country market's potential since trade deficit for example will result into lower demand from this MNE.
  2. predicts political risk of the foreign country.
  3. imposition on the BOP will result into lower cash flow.
  4. predicting exchange rate movements for international trades.

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