Which of the following is not a factor that favorably affects an MNC's cost of capital, according to your text?
A) exchange rate risk.
B) size.
C) access to international capital markets.
D) international diversification.

Question

Quizplus · Accepted Answer

Exchange rate risk is a factor that negatively affects an MNC's cost of capital, as it increases uncertainty and thus the cost of capital. The other options (B, C, and D) are all factors that can favorably affect an MNC's cost of capital.

Which of the Following Is Not a Factor That Favorably