Question: There is much debate about whether an MNE should consider individual country norms, a practice known as localization, when attempting to optimize the consolidated capital

There is much debate about whether an MNE should consider individual country norms, a practice known as localization, when attempting to optimize the consolidated capital structure and minimize the firm's cost of capital. Provide arguments for the advantages and disadvantages of localization of capital structure for subsidiaries. Do you think MNEs should localize the capital structure of their subsidiaries? Why or why not?

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