Costs and Benefits of Alternative Sources of International Finance:

Debt Financing: Debt financing offers the benefit of tax-deductible interest payments and potentially lower costs compared to equity financing. However, it also increases the financial risk and obligates the MNC to make interest and principal payments.
Equity Financing: Equity financing enables MNCs to raise capital without incurring debt obligations and interest costs. It provides flexibility and does not require regular interest or principal repayments. However, it dilutes ownership and may involve sharing control and decision-making with equity investors.
Multilateral Financing: Multilateral financing may offer favorable terms, longer tenures, and concessional interest rates for development projects. However, accessing multilateral financing often involves compliance with specific project requirements and can be subject to complex approval processes.