Of the Following, Which Is NOT Considered to Be an Advantage

question 10

Multiple Choice

Of the following, which is NOT considered to be an advantage to MNEs of having a financial structure adhere to local debt norms?

• A)A localized financial structure reduces criticism of foreign subsidiaries that have previously used a different capital structure.
• B)A localized financial structure helps management evaluate return on equity investment relative to local competitors in the same industry.
• C)MNE have a competitive advantage over the locals, thus by using the local capital structure, the MNE is even stronger.
• D)All of the above are noted as advantages to having a localized capital structure.