All of the (allowing are ways that a multinational corporation can minimize the impact of political risk
Question:
o Using local financing. purchasing country risk insurance.
o Paying off government officials.
o All of these are ways that a multinational corporation can minimize the impact of political risk.
When Starbucks opens a location in Mexico City, this is an example of
o Foreign direct investment.
o Arbitrage opportunity.
o Management of capital budgeting issues.
o None of these.
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Political Risk
Political risk is the risk an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign...
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Related Book For
Multinational Business Finance
ISBN: 978-0132743464
13th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
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