In general, an MNC's size, its access to international capital markets, and international diversification are unfavorable to an MNC's cost of capital.

Question

Quizplus · Accepted Answer

The statement is false. An MNC's size, access to international capital markets, and international diversification can actually improve its cost of capital by providing greater access to funding sources and opportunities for risk management through diversification.

In General, an MNC's Size, Its Access to International Capital