The most reliable way for the capital budgeting analysis to capture country risk is to increase the discount rate for projects in countries with higher perceived risk.
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Q5: Country risk can affect an MNC's cash
Q6: Higher interest rates tend to increase the
Q7: MNCs try to avoid project finance deals
Q8: While an overall risk rating of a
Q9: Since country risk is constantly changing and
Q11: If an MNC diversifies its operations internationally
Q12: Unlike project risk, country risk cannot be
Q13: A blockage of fund transfers imposed by
Q14: After a project is accepted and implemented,
Q15: When a government engages in an expansionary
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