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Question 9.S-TQ8: Describe the main factors influencing the choice and mix of ...

Describe the main factors influencing the choice and mix of financing used in foreign direct investment.

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The main factors influencing the choice and mix of financing used in foreign direct investment are gearing, taxation, political risk and currency risk. The financing decision should aim to minimise the cost of capital in order to maximise the value of the firm.

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