37. A German exporter realizing gains from the sale of U.S. exports, but also losses from the currency exchange risk associated with the cost to produce the goods abroad, experiences transaction risk. a. True b. False 38. A company's weighted average cost of capital will be higher if their debt is rated as risky. a. True b. False 39. MNEs can never successfully enter foreign markets as traders, licensors, or franchisors. a. True b. False 40. The four basic steps in ethical decision making are: define all the facts and circumstances, identify the people affected, determine the alternative decisions and consequences, and make the decision and carry it out. a. True b. False