A risk-averse firm would prefer to borrow ____ when the expected financing costs in a foreign country are similar to the costs in the local country.

Question

Quizplus · Accepted Answer

A risk-averse firm would prefer to borrow locally when the expected financing costs in a foreign country are similar to the costs in the local country because borrowing locally reduces the exposure to foreign exchange risk.

A Risk-Averse Firm Would Prefer to Borrow ____ When the Expected