True or False 15. Countries with high income per capita, even income distribution, and a broad economic base have stable political risk. True or False 16. One risk for exporters is foreign exchange risk. True or False 17. Letter of credit is an order written by an exported requesting an importer to pay a specified amount of money at a specified time. True False 18. A bill of lading is the shipping documents issued to the exporting firm or its bank by a common carrier that transports the goods. True or False 19. Large multinational companies must compromise with complexity when managing the multinational financial system. True or False 20. Reasons for misallocated cash are having surplus funds in low need areas and having a shortage of funds in high need areas. True or False 4. Varying the leasing currency is an example of an operational hedge. True or False 6. One reason that multinational firms make foreign direct investments is to acquire access to raw materials. True or False 7. One reason for market segmentation is differences in GAAP in different countries True or False 8. Information asymmetry is on reason for increased risk for multinational investments. True or False 9. Differences in capital structure for companies in different countries is one reason that companies in different countries may have different costs of capital True or False 10. Political risk results from changes in the economic and financial environment that may reduce the overall value of the firm's business activities. True or False 11. One way to avoid political risk is the avoid making investments overseas