One Reason an MNC May Consider Foreign Financing Is That

question 5

True/False

One reason an MNC may consider foreign financing is that the proceeds could be used to offset a foreign net payables position.

---

Definitions:

Appreciation

An increase in the value of an asset or currency over time, often due to economic or market factors.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or $, and divided into 100 smaller units known as cents.

Balance of Payments

A comprehensive summary of all economic transactions between residents of one country and the rest of the world over a specific period.

Exchange Rate

An economic measure that indicates how much one currency is worth in terms of another and is used in international financial transactions.