In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to ____ local interest rates.
A)more; low
B)more; high
C)less; low
D)B and C
E)none of the above

Question

Quizplus · Accepted Answer

MNCs likely prefer to use more foreign debt when their foreign subsidiaries are subject to low local interest rates, as it reduces the cost of borrowing.

In General, MNCs Probably Prefer to Use ____ Foreign Debt