In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 29

Multiple Choice

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)B and C
• E)none of the above

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Definitions:

Base-Rate Information

Statistical data that indicates the prevalence of a particular phenomenon in a given population.

Categorization-By-Levels

A cognitive process in which objects, ideas, or information are organized into hierarchical categories based on common properties or attributes, simplifying complexity and enhancing understanding.

Categorization-By-Features

The process of organizing objects or concepts into groups based on shared characteristics or attributes.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, emphasizing logic, rationality, and skepticism.