In case of international capital budgeting, the Canadian company can minimize its political risk by subtracting the investment as a joint venture and by selecting a competent and well-connected local partner.

Question

Quizplus · Accepted Answer

By forming a joint venture with a competent and well-connected local partner, the Canadian company can benefit from the partner's knowledge and connections in the local environment, thus reducing the political risk associated with the investment.

In Case of International Capital Budgeting, the Canadian Company Can