A previously undertaken project in a foreign country may no longer be feasible because:

Question

Quizplus · Accepted Answer

An increase in tax rates by the host government would increase the cost of doing business in the foreign country and decrease the profitability of the project, making it no longer feasible. The other options, such as declining interest rates or a decrease in the MNC's cost of capital, would actually make the project more attractive. A change in exchange rate projections from depreciation to appreciation could also make the project more attractive by increasing the value of the MNC's investments in the foreign country.

A Previously Undertaken Project in a Foreign Country May No