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.