One problem for companies that borrow locally in weak-currency countries is that interest rates tend to be higher.

Name: One problem for companies that borrow locally in weak-currency countries is that interest rates tend to be higher.
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Question

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When a country's currency is weak, there is typically higher inflation, which causes central banks to raise interest rates to combat inflation. This leads to higher borrowing costs for companies borrowing locally in weak-currency countries.

One Problem for Companies That Borrow Locally in Weak-Currency Countries