​A Negative Effective Financing Rate Indicates That an MNC

question 30

Multiple Choice

​A negative effective financing rate indicates that an MNC:

• A) ​paid only a small amount in interestover and above the amount borrowed.
• B) ​has been negatively affected by a large appreciation of the foreign currency.
• C) ​actually paid fewer dollars to repay the loan than it borrowed.
• D) ​would have been better off borrowing in the United States.

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Definitions:

Transportation Costs

Expenses associated with the movement of goods or individuals from one location to another.

Selling Price

The amount of money for which a product or service is offered for sale to the public.

Common-Carrier Delivery Contract

A type of contract in which purchased goods are delivered to the buyer via an independent contractor, such as a trucking line.

UPS

A global shipping and logistics company known for its package delivery services.