Question: Briefly explain how the following items affect the capital budgeting decisions of multinational companies: (a) Exchange rate risk; (b) Political risk; (c) Tax law differences;

Briefly explain how the following items affect the decisions of multinational companies:
(a) risk;
(b) Political risk;
(c) Tax law differences;
(d) Transfer pricing; and
(e) A strategic, rather than a strict, financial viewpoint.

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