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) more; high AND less; low
E) None of these are correct.

Question

Quizplus · Accepted Answer

MNCs are likely to prefer using more foreign debt when their foreign subsidiaries are subject to low local interest rates because it reduces the cost of borrowing.

In General, MNCs Probably Prefer to Use ____ Foreign Debt