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 be advantageous to its cost of capital. A larger size can increase the MNC's bargaining power with suppliers and lenders, while international diversification can reduce its exposure to country-specific risks. Access to international capital markets can provide the MNC with a wider range of funding options at potentially lower costs.

An MNC's Size, Its Access to International Capital Markets, and International