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Of the Following, Which Is NOT Considered to Be an Advantage

Question 25

Multiple Choice

Of the following, which is NOT considered to be an advantage to MNEs of having a financial structure adhere to local debt norms?


A) A localized financial structure reduces criticism of foreign subsidiaries that have previously used a different capital structure.
B) A localized financial structure helps management evaluate return on equity investment relative to local competitors in the same industry.
C) MNE have a competitive advantage over the locals, thus by using the local capital structure, the MNE is even stronger.
D) All of the above are noted as advantages to having a localized capital structure.

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