MNEs that are resident in liquid and unsegmented capital markets are more likely to be able to demonstrate financial strength by achieving and maintaining a global cost and availability of capital.

Question

Quizplus · Accepted Answer

MNEs that operate in liquid and unsegmented capital markets have greater access to a variety of funding sources, allowing them to achieve and maintain a global cost of capital that is competitive and stable over time. This financial strength can be a significant advantage for MNEs, as it allows them to take advantage of investment opportunities and respond quickly to changes in market conditions. In contrast, MNEs that operate in segmented or illiquid capital markets may struggle to raise capital or may face higher borrowing costs, which can limit their growth and investment options.

MNEs That Are Resident in Liquid and Unsegmented Capital Markets