Suppose Austin Co. is a US-based MNC that is expected to generate USD 50 million in cash flow next year from the US and EUR 20 million in cash flow from Europe. Suppose Austin is now predicting a coming recession in Europe. How might Austin revise their cash flow estimates? Reduce the USD cash flows if the European recession is expected to affect the US economy. Reduce the EUR cash flows. Reduce the EUR cash flows if the European recession is expected to lower the value of the EUR. All of the above. In David Ricardo's theory of comparative advantage, international trade should be based on the gold standard. is the same as the theory of merchantilsm. international trade is a zero-sum game in which one trading partner's gain comes at the expense of another's loss. international trade enhances the welfare of the world's citizens. The top nonfinancial MNC ranked by foreign assets in 2011 is Exxon Mobil Corporation. Toyota Motor Corporation. General Electric Co. Mitsubishi Corporation. How does an increase in political risk affect the MNC cost of capital and overseas investment opportunities? It would lower the cost of capital and lower investment opportunities. It would increase the cost of capital and lower investment opportunites. It would increase the cost of capital and increase investment opportunites. It would lower the cost of capital and increase investment opportunities