Case: Recognizing exposure to country risk:

Select a US based MNC (such as ExxonMobil or General Electric) that does considerable business in Russia. In a short essay describe the MNCs business in Russia and how its cash flows are exposed to country risk due to the Russian-Ukraine conflict. Many MNCs engaged in direct foreign investment in Russia several years before this conflict began. Explain the difficulty in predicting possible country risk issues such as this conflict several years into the future.

Refer: International Financial Management 13th Edition, Jeff Madura, pg-523