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, including differences in the risk-free rate and risk premiums, can lead to variations in the cost of capital across countries. Higher risk or uncertainty in a particular country may result in a higher cost of capital for businesses operating in that country.

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