When Evaluating a Foreign Investment Project,it Is Important for the MNC

question 72

Multiple Choice

When evaluating a foreign investment project,it is important for the MNC to consider the effect of political risk,as a sovereign country can change "the rules of the game." To account for this

• A)the MNC may adjust the cost of capital upward.
• B)the MNC may lower the expected cash flows from the foreign project.
• C)the MNC may purchase insurance policies against the hazard of political risks.
• D)all of the options

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement or indication at the time of learning but that can be demonstrated later when a suitable motivation is present.

Placebo Learning

Refers to the phenomenon where learning or positive effects occur because an individual believes they are receiving an intervention, even if the intervention has no therapeutic value.

Cognitive Learning

A theory of learning that explains how people process information, develop understanding, and solve problems through thought, experience, and the senses.

Higher Order

Cognitive processes that involve complex thinking skills such as reasoning, decision-making, and problem-solving beyond basic perceptual and motor skills.