The Rates at Which Investors Capitalize the Returns on Foreign

question 30

Multiple Choice

The rates at which investors capitalize the returns on foreign projects depends on all of the following EXCEPT

• A)whether shareholders are internationally diversified
• B)the relative costs of international diversification for the MNC and for individual investors
• C)the extent to which domestic systematic risk is unsystematic from a global standpoint
• D)the correlation between equity returns on different markets

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Definitions:

Legal Impact

The effect or influence of law on an activity, process, or situation, often in terms of compliance or litigation.

Prosecuted

The action of formally accusing someone of a crime and conducting legal proceedings against them in a court.

Global Firms

Companies that operate and provide services or goods in multiple countries around the world.

CSR

Stands for Corporate Social Responsibility, which refers to practices and policies undertaken by corporations to impact positively on society.