Question: 2. When evaluating a foreign investment project, it is important for the MNC to consider the effect of political risk, as a sovereign country can

2. 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 above

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