Country differences, such as differences in the risk-free interest rate and differences in risk premiums across countries, can cause the cost of capital to vary across countries.

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Country differences, such as the risk-free interest rate and risk premiums, affect the cost of capital in each country. These differences can affect the expected return on investments in different countries, and therefore the cost of capital may vary across countries.

Country Differences, Such as Differences in the Risk-Free Interest Rate