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Assume that the Toyota Motor Corporation has decided to shift some of its operations from China to Malaysia through opening a manufacturing unit in Malaysia.

Assume that the Toyota Motor Corporation has decided to shift some of its operations from China to Malaysia through opening a manufacturing unit in Malaysia. At the same time, Toyota prefers to finance this investment with bonds issuance to be sold to Malaysian investors. However, it is unsure if the bonds should be denominated in the USD or Malaysian Ringgit (the Malaysian currency), and whether to pay a fixed or floating interest rate. What is your recommendation to Toyota?

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