An MNC's Cost of Capital May Differ from That of Domestic

question 13

True/False

An MNC's cost of capital may differ from that of domestic firms because of the MNC's access to international capital markets, its exposure to exchange rate risk, and other characteristics.

---

Definitions:

Buffering

The technique of starting a message with neutral or positive information before delivering bad news or sensitive information.

Bad-News Message

Communication designed to relay unfavorable or disappointing information in a sensitive and understanding manner.

Anticipate Future Relations

The act of predicting and preparing for potential future interactions with others.

Resale

Resale refers to the act of selling something previously bought, often used goods, to another buyer.