Which is NOT an advantage of multinationals?

When considering the advantages of multinationals, it's important to recognize that reduced exchange rate risks is not typically seen as an advantage. In fact, multinationals often face significant exposure to exchange rate fluctuations because they operate in multiple countries, each with its own currency. This exposure can lead to financial risks when converting currencies, impacting profits and costs, rather than reducing risk.

On the other hand, the other options present clear advantages of being a multinational corporation. Taking advantage of government grants can significantly enhance financial resources available to the company. Access to lower raw material costs provides a competitive edge by reducing production expenses, while the ability to bypass national quotas allows multinationals to operate with fewer restrictions in different markets, thereby enhancing their global reach and market accessibility. These factors contribute to the strategic benefits enjoyed by multinational companies, contrasting with the inherent exchange rate risks they grapple with.