MNCs Use of Dollar-Denominated Short-Term Debt In recent years, U.S. short-term interest rates have been low. Write a short essay describing whether you (as a manager of an MNC) might be more willing to use dollar-denominated short-term debt to cover short-term funding needs for subsidiaries in foreign countries that generate positive earnings. Explain the possible trade-offs involved.

FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 20, Problem 1CT
Textbook Problem

MNCs Use of Dollar-Denominated Short-Term Debt In recent years, U.S. short-term interest rates have been low. Write a short essay describing whether you (as a manager of an MNC) might be more willing to use dollar-denominated short-term debt to cover short-term funding needs for subsidiaries in foreign countries that generate positive earnings. Explain the possible trade-offs involved.

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