1. What are the three main sources of financing for any firm?
2. What is the difference between a centralized and decentralized debt denomination for an MNC?
3. Will an MNC issuing debt in low-interest-rate cur- rencies necessarily lower its cost of funds? Why?
4. Should an MNC borrow primarily short term when short-term interest rates are lower than long-term interest rates? Or should it keep the maturity the same but use a floating-rate loan rather than a fixed- rate loan? Explain.
5. What is financial disintermediation?
6. What are the two main segments of the interna- tional bond market, and what types of regulations apply to them?
7. What is the difference between a foreign bond and a Eurobond?
8. Why might U.S. investors continue to purchase Eurobonds, despite the fact that the U.S. corporate bond market is well developed?