A firm may incorporate a country risk rating into the capital budgeting analysis by:
A) adjusting the NPV upward if the country risk rating has fallen (implying increased risk) below a benchmark level.
B) adjusting the discount rate upward as the country risk rating decreases (implying increased risk) .
C) A and B
D) None of the above
Correct Answer:
Verified
Q1: An MNC must assess country risk not
Q2: According to the text, country risk analysis
Q3: Risk assessors almost always arrive at the
Q6: _ is (are) not a form of
Q15: A micro-assessment of country risk:
A) is adjusted
Q16: An MNC has a foreign manufacturing plant
Q18: When using a checklist approach to assess
Q24: The checklist approach:
A) requires several inspections of
Q34: To make an MNC's operations coincide with
Q52: Country risk analysis is important because it:
A)can
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