According to your text,which of the following is not a factor that affects an MNC's cost of capital unfavorably
A) exchange rate risk.
B) country risk.
C) political risk.
D) size.

Question

Quizplus · Accepted Answer

Size typically has a positive effect on an MNC's cost of capital, as larger firms often have more diversified operations and greater access to capital markets, leading to lower borrowing costs. Exchange rate risk, country risk, and political risk all have negative effects on an MNC's cost of capital, as they increase uncertainty and risk for investors and lenders.

According to Your Text,which of the Following Is Not a Factor