Effective financing rate for the borrowed foreign funds

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Reference no: EM13952132

Explain what an MNE needs to consider when borrowing funds in a foreign currency. As part of your answer, explain what happens if the foreign currency of the borrowed funds appreciates or depreciates, how you calculate the effective cost of borrowing (effective financing rate), and whether or not the effective financing rate for the borrowed foreign funds will be different than the quoted interest rate. Read the two associated PowerPoint resources International Finance and Introduction to Financial Markets to inform your answer.

Reference no: EM13952132

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