In recent years, some Asian-based MNCs have taken advantage of the very low interest rates in Europe by borrowing large amount of euro to finance their operations. Write a short essay that explains the advantages and possible disadvantages (if any) due to this type of financing. Show how you do you estimate these borrowings in the short term and long term. How does euro appreciation and depreciation affect the cost of capital of Asian-based MNCs.

Answer rating: 100% (QA)

Loan financing refers to raising funds for banks and lending agencies Crossborder financial transact... View the full answer