Some large companies based in Latin American countries could borrow funds (through issuing bonds or borrowing from U.S. banks) at an interest rate that would be substantially less than the interest rates in their own countries. Assuming that they are perceived to be creditworthy in the United States, why might they still prefer to borrow in their local countries when financing local projects (even if they incur interest rates of 80 percent or more)?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.