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

Question

Quizplus · Accepted Answer

The statement is correct as it reflects the trend of foreign subsidiaries to access the debt markets of the country they operate in first. This helps them to benefit from lower costs, accessibility and regulatory requirements.

The Trend in the Debt Financing of Foreign Subsidiaries Is