Please use Starbucks for the example. Using a specific firm as a concrete example, how can the following affect the capital budgeting decisions of the multinational company you selected?

• Exchange rate risk
• Political risk
• Tax law differences
• Transfer pricing
• A strategic rather than a strict financial viewpoint

For the firm you selected, consider the following:

• Which of the above would be the most important consideration? Why?
• How might these ideas differ if the firm you chose were part of a different industry?
• How might these your ideas change with a small business seeking to engage in multinational commerce?
• What specific capital budgeting factors would discourage a firm from entering multinational commerce? Why? Provide a concrete example.