Question: Suppose that Washington Co. is a U.S. based MNC that is considering acquiring a target firm in Canada, which Washington would sell after three years.

Suppose that Washington Co. is a U.S. based MNC that is considering acquiring a target firm in Canada, which Washington would sell after three years.

All else equal, if credit availability in Canada increases then the price offered for the target company (by any acquirer) will tend to (DECREASE OR INCREASE). On the other hand, if credit availability in Canada decreases then the price offered for the target company (by any acquirer) will tend to (DECREASE OR INCREASE).

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