Question

1. For the MNC, the advantage of using global equity markets is:
   1. Generating funding for FDI initiatives in target markets
   2. All of the answers are correct
   3. Increasing the visibility of the firm in foreign markets
   4. Having stock and stock options for employee pay incentives in foreign subsidiaries
   5. Potentially meeting any local ownership requirement

Answer 1

Option B is correct (i.e. All of the answers are correct )For the MNC, the advantages of using global equity markets are:
A. As the MNC’s are the important source of FDI it pertains to generate funds for the FDI in the target markets. The movements of the foreign capital takes place through the medium of MNC’s. The MNC’s provides various assets by the means of FDI transactions to boost up the economic growth of the host country.
C. Access to the global equity markets provide MNC’ the chance to increase the visibility of the firm in foreign markets. Using global equity market provides the MNC’s a global platform to be recognized in worldwide.
D. Having stock and stock options for employee pay incentives in foreign subsidiaries which finally provide the benefits in the long term.
E. using global equity market provides a chance to the MNC’s for potentially meeting any local ownership requirement, i.e., it helps the MNC’s to meet the expenses or other requirements in the host country or any country where the company has established itself.