Obtaining Local Currency Debt Obligations Is Particularly Attractive to an MNE

question 24

Multiple Choice

Obtaining local currency debt obligations is particularly attractive to an MNE if the subsidiary has

• A) substantial accounts payable in the local currency.
• B) substantial financial obligations in foreign currency units.
• C) substantial accounts receivable in the local currency.
• D) all of the above.

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Definitions:

Disagreement

A condition or situation in which there is a lack of consensus or approval between two or more parties.

Conflict

A situation or process in which there is a struggle between opposing forces or interests, often resulting in physical or emotional tension.

Self-serving Bias

A cognitive bias that involves interpreting situations in a way that benefits oneself or assigning blame to external factors for personal failures and challenges.

Salience

The quality of being particularly noticeable or important; prominence.