Describe two instruments used to source long term debt in the global market and discuss why a firm may decide to raise debt capital internationally

Two instruments used by companies to raise long-term source debt are bank loans and bonds with a maturity of more than a year. Banks provide long-term loans by analyzing the credit score of an organization or business. While, the firms can also raise funds (long-term debt) through bonds that are issued with the maturity of more than one period that helps to enhance the business activities and to invest in firms' projects.

Firms sometimes decide to raise debt capital internationally because it may be beneficial and may lead to lower interest payments. An open economy encourages foreign investments that help to enhance the business and provide financial support. Thus, firms raise funds internationally when it is more expensive to raise funds in the domestic country.