Question

How barriers to capital flows effect finacing decision of mnc?

Answer 1

The financing and capital budgeting decisions of the multinational are distorted by factors including barriers to financial flows

Answer 2

Answer:

These factors include tax laws, demographics, monetary policies, and economic conditions, all of which differ among countries. Tax laws in some countries offer more incentives to save than those in others, which can influence the supply of savings and, therefore, interest rates

Explanation:

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