For purposes of international capital budgeting, evaluation of a project from the PARENT viewpoint serves some useful purposes, but it should be subordinated to evaluation from the LOCAL's viewpoint.

Question

Quizplus · Accepted Answer

Evaluation from the LOCAL's viewpoint should be given priority in international capital budgeting as it takes into account local market conditions, regulations, and cultural factors that may impact the success of the project. The PARENT viewpoint, while important, may not fully capture these factors.

For Purposes of International Capital Budgeting, Evaluation of a Project