How is expropriation risk factored into the capital budgeting analysis of a foreign project?
Answer to relevant QuestionsWhat is real option analysis? How is it a better method of making investment decisions than using traditional capital budgeting analysis? In the context of evaluating foreign investment proposals, how should a multinational firm evaluate cash flows in the host foreign country that are blocked from being repatriated to the firm’s home country? Is any operating exposure created during the course of a firm’s operating cycle? What are the advantages of a free trade zone? Are there any disadvantages? What is the difference between a “management fee”, a “technical assistance fee”, and a “license fee for patent usage”? Should they be treated differently for income tax purposes?
Post your question