In theory multinational firms are in a better position than domestic firms to support higher debt ratios.

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Multinational firms may have access to financing from multiple countries and currencies, allowing them to diversify their sources of funding and potentially access cheaper financing. They may also have more stable cash flows from operations in different markets, reducing the risk of default on debt payments. However, this is a theoretical advantage and ultimately the actual debt ratio a firm should carry will depend on a variety of factors including its financial goals, market conditions, and regulatory requirements.

In Theory Multinational Firms Are in a Better Position Than