The concept of liquidity preference in international operations refers to ________.

The concept of liquidity preference in international operations refers to how investor preferences influence the degree to which investors prefer to invest in either domestic or foreign assets. This concept is based on the idea that investors prefer and demand higher returns for investing in foreign securities due to risks associated with currency exchange, market volatility, and political and economic uncertainty. The degree of risk associated with foreign assets is among the main factors that influence the liquidity preference for international operations. This concept also applies to how companies manage international cash flows and make decisions about where to allocate that capital.