Financing Corporate Expansion

Multiple Choice

Financing Corporate Expansion
Intensity Games is an MNE based in San Francisco that manufactures a popular line of video game consoles and accessories. Intensity owns manufacturing facilities in China and Russia where the components of the game consoles are manufactured and assembled before being shipped around the world. Intensity also owns numerous subsidiaries that manufacture game cartridges for Intensity game platforms. Intensity managers have determined that the firm needs to expand the Chinese facility to accommodate increased demand. The firm needs to raise several million dollars to finance the expansion. The financial managers of Intensity are discussing the various financing options available to the firm.
-Which of the following is most likely an advantage of Intensity accessing funds through the global capital market instead of through domestic sources?

A) availability of a large pool of investment opportunities
B) access to a vast number of 3 funding sources
C) concentration of major and secondary financial centers
D) reduced exposure to currency risk and rate fluctuation