Empirical Studies Indicate That MNEs Have a Lower Debt/capital Ratio

question 1

True/False

Empirical studies indicate that MNEs have a lower debt/capital ratio than domestic counterparts, indicating that MNEs have a lower cost of capital.

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Definitions:

Creditor Nation

A country that has more investments abroad than other countries have within its borders, making it a net lender to the rest of the world.

Australian Dollars

The currency unit of Australia, used as a medium of exchange and a standard of value, also known as the AUD in international finance markets.

U.S. Dollars

The official currency of the United States of America, widely used as a benchmark and reserve currency around the world.

Priced

This term refers to the determination of a financial value for a product or service.