Why do most international businesses require all budgets and performance data to be expressed in the “corporate currency”?Group of answer choicesTo comply with local regulationsTo facilitate comparison between subsidiaries in different countriesTo increase foreign exchange costsTo simplify accounting processes in each subsidiary

Most international businesses require all budgets and performance data to be expressed in the “corporate currency” to facilitate comparison between subsidiaries in different countries. This practice allows the parent company to easily compare and analyze the performance of each subsidiary without having to deal with the complexities of different currencies. It simplifies the process of financial reporting and performance evaluation.

Most international businesses require all budgets and performance data to be expressed in the “corporate currency” to facilitate comparison between subsidiaries in different countries.

Here's why:

1. Standardization: Having a common currency allows for standardization across the company. This makes it easier to compare and contrast the performance of different subsidiaries.

2. Simplification: It simplifies the process of consolidating financial statements. If each subsidiary reported in its own currency, the parent company would have to convert each one into its own currency to understand the overall financial situation.

3. Risk Management: It helps in managing foreign exchange risk. By using one currency, the company can more easily anticipate and manage potential losses due to currency fluctuations.

4. Decision Making: It aids in decision making. When all financial data is in one currency, it's easier for management to make decisions about resource allocation, performance evaluation, and strategic planning.

So, the main reason is not to comply with local regulations, increase foreign exchange costs, or to simplify accounting processes in each subsidiary, but rather to facilitate comparison between subsidiaries in different countries.