A MNE's marginal cost of capital is constant for considerable ranges in its capital budget, but this statement cannot be made for most domestic firms.

Question

Quizplus · Accepted Answer

The marginal cost of capital for multinational enterprises (MNEs) can remain constant over a wider range due to their access to diverse and larger capital markets, unlike most domestic firms which may face increasing costs as they exhaust local funding sources.

A MNE's Marginal Cost of Capital Is Constant for Considerable