In theory MNE should be able to support higher debt ratios and have lower associated costs.

Question

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MNEs often have access to a more diverse range of financing options, including international bond markets and syndicated loans, which can result in lower borrowing costs. Additionally, MNEs may have a higher capacity to service debt due to their size, diversification, and global operations. However, the actual level of debt financing and associated costs will depend on various factors such as the MNE's credit rating, market conditions, and financial policies.

In Theory MNE Should Be Able to Support Higher Debt