Empirical Studies Indicate That MNEs Have Higher Costs of Capital

question 5

Multiple Choice

Empirical studies indicate that MNEs have higher costs of capital than purely domestic firms. This could be due to higher levels of:

• A) political risk.
• B) exchange rate risk.
• C) agency costs.
• D) all of the above

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Definitions:

Circular Runout

Circular runout is a tolerance specified on cylindrical parts to control the amount of variation or wobbles as the part rotates around a datum axis.

Right Angles

Describes an angle of 90 degrees, representing the intersection at which two lines or planes meet to form a perfect corner.

Circular Elements

Components or parts of a design characterized by their round shape, important in various engineering and architectural constructs.

Circular Runout

A geometric dimensioning and tolerancing (GD&T) term that refers to the variation of a feature's surface as it is rotated around a datum axis.