When multinational companies (MNCs) invest globally, they have to think about different laws and taxes in each country. Laws about how businesses operate and taxes they pay can affect how much money they make and if they get into legal disputes. Taxes directly impact how much profit they make. Since tax laws differ between countries, MNCs have to plan their investments in a way that pays the least tax to stay profitable. Adding country risk premiums to the cost of investing is important. These premiums consider things like how stable a country's government is and how the economy is doing. By adjusting the cost of investing to match the risks in each country, companies can make better decisions about where to invest their money. Understanding these legal and tax differences helps MNCs make smart choices about where to put their money globally, keeping them competitive and profitable