Question: What is the chief drawback for a U . S . company that borrows ( loan or bond ) denominated in the currency of a
What is the chief drawback for a US company that borrows loan or bond denominated in the currency of a developing country?
A The local justice system cannot compel the company to pay back the loan
B The developing countrys currency will almost certainly appreciate against the US dollar
C US firms cannot deduct interest expense on the bonds in currencies at tax returns
D The interest rate on loans denominated in developing country currencies is usually very high
E None of the above
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