MNEs most likely use offshore debt markets ________.
A)to hide their cash from tax authorities
B)to take advantage of their ability to access capital in different countries
C)since debt in foreign countries is always cheaper than in the home-country market
D)because investors don't like to invest in companies that only raise capital in their home markets

Question

Quizplus · Accepted Answer

MNEs may use offshore debt markets to take advantage of their ability to access capital in different countries. Offshore debt markets can offer more favorable interest rates and lower borrowing costs compared to domestic debt markets. This can be especially beneficial for MNEs with a global presence in multiple countries, as they can tap into diverse sources of funding to meet their capital needs. However, it is important to note that the use of offshore debt markets may also be driven by other factors, such as hedging currency risk or managing cash flows, and may have tax implications.

MNEs Most Likely Use Offshore Debt Markets ________