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 have to consider various political and economic risks that may not be applicable to a domestic corporation. These risks can have a significant impact on the investment decisions made by the MNCs.

Unlike Other Corporations Undertaking the Capital Budgeting Process, ___________ Need