Multiple Choice
The cost of capital is lower for multinational firms because:
A) they are larger and as a result receive preferential treatment by creditors.
B) they have better access to international capital markets.
C) they are exposed to foreign exchange risk.
D) both they are larger and as a result receive preferential treatment by creditors and they have better . access to international capital markets.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: The net present value method:<br>A) takes account
Q18: The implications of the currency areas hypothesis
Q19: Which of the following theories of FDI
Q20: The arguments against FDI include:<br>A) FDI symbolises
Q21: Why might a multinational firm depend on
Q23: The Weighted Average Cost of Capital:<br>A) equals
Q24: The growth of foreign direct investment in
Q25: How might country risk be incorporated into
Q26: A project with a net present value
Q27: Which of the following was not a