International capital budgeting differs from domestic capital budgeting as cash inflows and outflows occur in a foreign currency and foreign investments potentially face significant political risk.

Question

Quizplus · Accepted Answer

International capital budgeting involves dealing with foreign currencies and political risk, which are not present in domestic capital budgeting. This makes international capital budgeting more complex and challenging than its domestic counterpart.

International Capital Budgeting Differs from Domestic Capital Budgeting as Cash