Which of the Following Is Not a Host Country Characteristic

question 31

Multiple Choice

Which of the following is not a host country characteristic than can affect an MNC's capital structure decision?​

• A)the strength of the host country currency
• B)the country risk in the host country
• C)political decisions to increase penalties for criminals in the host country
• D)tax laws in the host country

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Definitions:

Term of Loan

The duration over which a loan agreement is in effect, encompassing the time by which the loan must be repaid.

Rate of Return

The gain or loss on an investment over a specific period, expressed as a percentage of the investment's cost.

Nominal Rate

the interest rate before adjustments for inflation, often cited in loan and savings agreements.

Compounded Annually

Interest on a loan or investment is calculated once a year, with each year’s interest added to the principal for the subsequent year’s interest calculation.