$1.$ If Blades expands into Thailand, do you think its cost of capital will be higher or lower than the cost of capital of roller blades manufacturers operating solely in the United States? Substantiate your answer by outlining how Blades$$ characteristics distinguish it from domestic roller blades manufacturers.

$2.$ According to the CAPM, how would Blades$$ required rate of return be affected by an expansion into Thailand? How do you reconcile this result with your answer to question $1?$ Do you think Blades should use the required rate of return resulting from the CAPM to discount the cash flows of the Thai subsidiary to determine its NPV$?$

$3.$ If Blades borrows funds in Thailand to support its Thai subsidiary, how would this affect its cost of capital? Why?

G$4.$ iven the high level of interest rates in Thailand, the high level of exchange rate risk, and the high $($perceived$)$ level of country risk, do you think Blades will be more or less likely to use debt in its capital structure as a result of its expansion into Thailand? Why?