Country Risk Can Affect an MNC's Cash Flows but Cannot

question 35

True/False

Country risk can affect an MNC's cash flows but cannot affect its cost of capital.

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Definitions:

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of the individual.

Industrialization

The process in which a society or country transforms itself from a primarily agrarian society into one based on the manufacturing of goods and services.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Deregulation

The process of removing government regulations, oversight, and involvement from an industry.