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:

Personal Protective Equipment

Equipment worn to minimize exposure to hazards that can cause injuries and illnesses in the workplace, including gloves, masks, and goggles.

Medical Assistant

An allied health professional who supports the work of physicians and healthcare practitioners by undertaking various clinical and administrative tasks.

Supernatant

The liquid portion of a substance from which solids have settled to the bottom, as with a urine specimen after centrifugation.

Urine

A liquid by-product of metabolism in humans and many animals, expelled from the body.