Higher interest rates in a foreign country tend to ____ the growth of the country's economy and ____ demand for the MNC's product.

Question

Quizplus · Accepted Answer

Higher interest rates in a foreign country tend to slow down economic growth as borrowing costs increase, leading to reduced consumer and business spending. This slowdown in the economy generally leads to a decrease in demand for products, including those offered by multinational corporations (MNCs).

Higher Interest Rates in a Foreign Country Tend to ____