Empirical research shows that MNC financing decisions are affected by several factors besides cost of capital. MNC affiliates' capital structure is designed to accommodate the imperatives of tax planning, agency costs, host country political risk, the level of creditor rights protection, regulatory restrictions and capital market development in the host country. Additionally, as issuer requirements increase, there can also be [...]
Here is an essay on ‘Foreign Direct Investment’ for class 11 and 12. Find paragraphs, long and short essays on ‘Foreign Direct Investment’ especially written for school and college students. Essay on FDI Essay # 1. Introduction to Foreign Direct Investment: FDI is inherently long-term in nature and gives the investor 'control' or 'influence of the management' of an overseas [...]
Between 1900 and 2000 many countries in Asia, Africa and Latin America emerged from colonial rule and the consequent 'legacy' exchange rate regimes that were imposed upon them. Inevitably a narrative of the evolution of the international financial system is principally a narrative of negotiations and agreements reached between developed countries. Developments in the international monetary system are given below: [...]