Borrowing foreign currency

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Borrowing Foreign Currency

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

Would the US be a good example of this?

Reference no: EM131865765

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