Which of the following is a major benefit of international lending? It eliminates exchange rate risk in financial activities. It requires reducing restrictive international trade practices in the lending and the borrowing countries. It allows both small countries and large countries to apply similar levels of optimal taxes on the international loans. It allows some lenders to shift their lending to foreign borrowers who are willing to pay higher interest rates on the loans.

Which of the following is a major benefit of international lending? It eliminates exchange rate risk in financial activities. It requires reducing restrictive international trade practices in the lending and the borrowing countries. It allows both small countries and large countries to apply similar levels of optimal taxes on the international loans. It allows some lenders to shift their lending to foreign borrowers who are willing to pay higher interest rates on the loans.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 7QA

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