Which of the following is not a host country characteristic than can affect an MNC's capital structure decision?
A) the strength of the host country currency
B) the country risk in the host country
C) political decisions to increase penalties for criminals in the host country
D) tax laws in the host country
Answer Key

Question

Quizplus · Accepted Answer

The political decision to increase penalties for criminals in the host country is not a characteristic that can directly affect an MNC's capital structure decision. The strength of the host country currency, country risk, and tax laws can all impact an MNC's financing decisions.

Which of the Following Is Not a Host Country Characteristic