When determining whether a particular proposed project in a foreign country is feasible: a. a country risk rating can adequately substitute for a capital budgeting analysis. b. country risk analysis should be incorporated within the capital budgeting analysis. c. The effect of country risk on sales revenue is more important than the effect on cash flows d. the project with the highest country risk rating (lowest country risk) should be accepted. Band D. Which of the following statements regarding the Eurozone is correct? a. All members of the European Union are members of the Eurozone. b. All members of the Eurozone are members of the European Union. c. The conditions and process for leaving the Eurozone are set out in the Lisbon Treaty. d. Both B and C are true. e. Both A and C are true. You're a Canadian company, producing in Canada and selling cars in Brazil. Your prices are set in BRL at the beginning of each year. The cash flows from your Brazilian operation represent: a. Transaction exposure but not economic exposure. b. Translation exposure but not economic exposure. c. Economic exposure but not transaction exposure. d. Both transaction exposure and economic exposure. e. Neither transaction nor economic exposure. You're a Canadian company, producing in Canada and selling cars in both Canada and Brazil. Which of the following actions would reduce your structural foreign exchange mismatch? a. Selling Brazilian real forward against the Canadian dollar. b. Buying Brazilian real forward against the Canadian dollar. c. Purchasing imported components from Brazil. d. Decreasing your sales in Canada. e. None of the above