FMC Corporation, a Philadelphia-based specialty chemicals company, traditionally finances its Brazilian operations from outside that country because

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FMC Corporation, a Philadelphia-based specialty chemicals company, traditionally finances its Brazilian operations from outside that country because it is “too expensive” to borrow local currency in Brazil. Brazilian interest rates vary from 12% to more than 30%. FMC Corporation is now thinking of switching to Brazilian real financing because of a pending real devaluation. Assess FMC Corporation’s financing strategy.

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Multinational Financial Management

ISBN: 9781119559900

11th Edition

Authors: Alan C Shapiro, Paul Hanouna

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