When MNCs pursue international projects that have a high potential for return, but also increase their risk, this increases the return to the bondholders that provided credit to the MNCs.

Question

Quizplus · Accepted Answer

When MNCs take on high-risk projects, it increases the risk of default, which can negatively impact bondholders as they are more concerned with the company's ability to repay debt rather than potential returns.

When MNCs Pursue International Projects That Have a High Potential