In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to ____ local interest rates.
A) more; low
B) more; high
C) less; low
D) B and C
E) none of the above

Question

Quizplus · Accepted Answer

MNCs prefer to use more foreign debt when their foreign subsidiaries face low local interest rates because it is cheaper to borrow in those markets.

In General, MNCs Probably Prefer to Use ____ Foreign Debt