Unlike other corporations undertaking the capital budgeting process, ___________ need to consider possible added political and economic risks such as the possibility of seizure of assets, unstable currencies, foreign exchange controls and foreign tax regulations.

Question

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MNCs (Multinational Corporations) operate in multiple countries and therefore, their capital budgeting process needs to consider political and economic risks that may vary across different countries. These risks include the possibility of seizure of assets, unstable currencies, foreign exchange controls, and foreign tax regulations. MOGs (Major Oil Companies), SWOTs (Strengths, Weaknesses, Opportunities, and Threats), and LTDs (Limited Companies) do not necessarily operate in multiple countries and may not face the same level of political and economic risks as MNCs.

Unlike Other Corporations Undertaking the Capital Budgeting Process, ___________ Need