Multinational Firms Have Found That They Can Lower Borrowing Costs

question 102

Multiple Choice

Multinational firms have found that they can lower borrowing costs

• A) by borrowing Eurodollars at a lower rate than the Canadian prime rate.
• B) by borrowing foreign currencies through foreign subsidiaries at rates lower than the Canadian prime and then converting these foreign loans into dollars.
• C) by using more bankers' acceptances.
• D) two of the answers are correct

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Definitions:

Face-to-Face Communication

Direct interaction between two or more individuals in the same physical space, allowing for immediate feedback.

Direct Approach

A communication strategy that involves presenting the main idea or conclusion at the beginning, followed by supporting details.

Negative Organizational News

Information regarding adverse events, decisions, or conditions within an organization that must be communicated to stakeholders in a carefully crafted manner.

Element of Surprise

An unexpected event or fact in a situation that can dramatically alter perceptions or outcomes.