Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?
A) MNEs tend to rely more on short and intermediate term debt.
B) MNEs have greater foreign exchange risk.
C) MNEs have greater costs of asymmetric information.
D) MNEs have higher agency costs.

Question

Quizplus · Accepted Answer

MNEs tend to rely more on long-term debt rather than short and intermediate term debt. This is because MNEs have a greater ability to access capital markets and have a longer time horizon for their investments, allowing them to issue longer term debt.

Which of the Following Statements Is NOT True Regarding MNEs