Since we are risk-averse, do we carry this over into business transactions? Multinational corporations are in business to make money. T However, multinational corporations have many factors to consider such as inflation, purchasing power parity, interest rates, and other qualifications. It would make more sense to borrow at higher interest rates from Brazil because when it is time to pay it back, the Purchase Power Parity for its currency is low. It would also make more sense to borrow from Brazil because if the U.S. is going to do business with them as far as importing the risk of loss due to exchange rates may decrease. The most important reason to borrow from Brazil than Switzerland would be the fact that Brazil has fewer terms and conditions. Brazil is trying to build the economy more and by having higher interest rates they can get their money back faster. Switzerland does not need the money. So, they have lower rates to attract borrows but they do not have flexible terms or conditions. No matter how many slices you make the pizza is still the same size. How can you apply this to getting loans from different loan institutions?