Debt can be a double-edged sword, depending upon the interest rates and the return on the investment. Debt is generally part of a company's financial structure. The upcoming discussion topic is about the financial structures of MNEs.

Please respond to all of the following prompts:

List and explain four variables of the optimal financial structure of the MNE.

In your opinion, which one is the most important key to an optimal financial structure?

State and explain various methods of financing that can be used for foreign subsidiaries.