ScholarMatic: Explanation & Answer
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Unit #8 Journal
Instructions
Choose a multinational company on which to base your journal entry. Reflect on the company, the concepts in the unit, and the current economic environment in which the company operates and consider any relevant exchange and interest rates.
Imagine that you are the manager of the company you have chosen to study. Considering short-term interest rates of the United States, would you be more willing to use dollar-denominated short-term debt to cover short-term funding needs for your foreign subsidiaries if it had positive earnings? What if it had negative earnings? Explain why, and discuss any possible trade-offs involved. Your journal entry must be at least 200 words in length. No references or citations are necessary.
ScholarMatic: Explanation & Answer
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