Because of their access to the international bond and equity markets, MNCs may have lower costs of various sources of long-term financing, thus resulting in differences between the capital structures of these firms and those of purely domestic companies.

Question

Quizplus · Accepted Answer

MNCs have access to a wider pool of investors and funding sources, often at lower costs, due to their global reach and reputation. This can lead to differences in their capital structure compared to purely domestic companies, which may not have such access to global markets.

Because of Their Access to the International Bond and Equity