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How can the following affect the capital budgeting decisions of multinational companies: - exchange rate risk - political risk - tax law differences - transfer

How can the following affect the capital budgeting decisions of multinational companies:

- exchange rate risk - political risk - tax law differences - transfer pricing - a strategic rather than a strict financial viewpoint

What examples can you provide from your reading of business periodicals to support your ideas? Remember to think about both large and small firms.

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