The trend in the debt financing of foreign subsidiaries is to tap the local markets first, so Toyota in the United States would tend to tap into U.S. debt markets and Pepsi in Japan would tend to go to the Japanese debt markets first.

Question

Quizplus · Accepted Answer

This statement is true. The trend in recent years has been for foreign subsidiaries to seek financing from local debt markets first, as this can often result in lower costs and better access to funding. Toyota in the United States would therefore prioritize accessing U.S. debt markets, while Pepsi in Japan would look to Japanese debt markets first.

The Trend in the Debt Financing of Foreign Subsidiaries Is