Since the cost of funds can vary among markets, the MNC's access to the international capital markets may allow it to attract funds at a lower cost than that paid by domestic firms.

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This is because the international capital market provides a larger pool of funds for MNCs to draw from, and competition among investors in different markets can drive down the cost of funds. Additionally, MNCs may be able to take advantage of interest rate differentials between countries to obtain cheaper financing.

Since the Cost of Funds Can Vary Among Markets, the MNC's