A firm may seek to raise funds outside its domestic capital market for one or more of the following reasons:

Question

Quizplus · Accepted Answer

Each of the reasons listed (A through D) are valid motivations for a firm to seek funding outside its domestic capital market. Raising a large amount of capital that exceeds local market capacity (A), taking advantage of lower borrowing costs abroad (B), needing funds in a foreign currency (C), and diversifying funding sources to manage risks and costs (D) are all strategic financial decisions that can lead firms to explore international capital markets.

A Firm May Seek to Raise Funds Outside Its Domestic