Blocked funds may penalize a project if the return on the forced reinvestment in the foreign country is less than the required rate of return on the project.

Question

Quizplus · Accepted Answer

This statement is true. If a project's funds are blocked in a foreign country and the forced reinvestment in that country has a lower rate of return than the required rate of return on the project, the project may face penalties and a negative impact on its overall performance.

Blocked Funds May Penalize a Project If the Return on the Forced