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.

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Definitions:

Blood Vessel

Any of the tubular structures carrying blood through the circulatory system, including arteries, veins, and capillaries.

Brain Tissue

The collection of neurons, glial cells, and other cellular components that make up the brain.

Congestive Heart Failure

A condition where the heart is unable to pump blood effectively, leading to a buildup of fluid in the lungs and other body tissues.

Leukemia

A form of cancer that targets the blood and bone marrow, marked by the excessive creation of irregular white blood cells.