旌岗强有贺6大号 国际财务管理 微型案例 2.Explain the logic behind the Mexican government's reluctance to quickly reduce interest rates.Is there any disadvantage associated with a policy of allowing interest rates to remain high? 3.How might U.S.-based MNCs expand in Mexico without incurring the high Mexican interest expenses when financing the expansion?Are there any disadvantages associated with this strategy？ 4.Are there any additional alternatives for the Mexican subsidiary to finance its business itself after it has been well established?How might this strategy affect the subsidiary's capital structure? -7-国际财务管理 微型案例 - 7 - 2. Explain the logic behind the Mexican government’s reluctance to quickly reduce interest rates. Is there any disadvantage associated with a policy of allowing interest rates to remain high? 3. How might U.S.-based MNCs expand in Mexico without incurring the high Mexican interest expenses when financing the expansion? Are there any disadvantages associated with this strategy? 4. Are there any additional alternatives for the Mexican subsidiary to finance its business itself after it has been well established? How might this strategy affect the subsidiary’s capital structure?