Which of the following factors is generally not expected to have a favorable impact on an MNC's cost of capital according to the text?
A) easy access to international capital markets
B) high degree of international diversification
C) high exposure to exchange rate fluctuations
D) All of these are correct.

Question

Quizplus · Accepted Answer

High exposure to exchange rate fluctuations is generally not expected to have a favorable impact on an MNC's cost of capital, as it increases risks and uncertainty in the international financial market. Options A and B are expected to have a favorable impact on an MNC's cost of capital.

Which of the Following Factors Is Generally Not Expected to Have