Why do foreign multinationals often have advantaged access to capital in emerging economies over purely domestic companies?

Foreign multinationals often have advantaged access to capital in emerging economies due to their established global networks, strong credit ratings, and greater credibility with international investors. They typically possess more diversified revenue streams and proven business models, which instill confidence in lenders and investors. Additionally, local governments may offer incentives to attract foreign investment, further enhancing capital access. In contrast, domestic companies may face challenges such as limited financial resources and higher perceived risks.