Problem
Foreign Ventures Ltd is a multinational company with a head office in London and many subsidiaries in Africa and Asia. A subsidiary in Africa is considering the possibility of raising funds either in the domestic market using the Eurocurrency and Eurobond markets.
Task
1. Explain the main features of the Eurocurrency, Eurobond and Euro-equity markets.
2. Discuss the factors that are relevant in the choice for a large multinational between borrowing funds on the domestic markets or international markets.