Speculating on future exchange rate movements, Financial Management

There is some discussion on whether Multinational Corporations (MNC's) enhance risk when borrowing foreign currencies. Those in favor of borrowing state that lower costs of financing can be achieved and it progress their ability to compete. Those against state that when an MNC borrows a foreign currency, they are essentially speculating on future exchange rate movements.Take a side and defend your argument.

 

Posted Date: 3/30/2013 2:52:22 AM | Location : United States







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