In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 5

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to potentially ____ local currencies.

• A) more; strong
• B) more; weak
• C) less; strong
• D) less; weak
• E) B and D

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Definitions:

Economic Conditions

A state of a region or country's economy, encompassing factors such as growth rates, unemployment, inflation, and consumer confidence.

Profitability Timeframe

The period in which a business or project is expected to transition from operating at a loss to generating profits.

Strategic Fit

The degree to which an organization's strategies align with its external environment and internal resources and capabilities.

Level of Competition

The intensity and number of competitors within a market, affecting strategies and market positioning.