(a) Identify three issues (excluding currency exposure issues) that cause difficulties for multinational companies. For 3 marks per issue, write a short paragraph explaining the issue and discussing an example. + + Note: The three issues you choose must NOT be closely similar to each other, and you need to write a paragraph for each issue. - marks) - (b) Please identify and explain the two components that are multiplied together to form the "country risk premium" that is used as an input into the SML equation when calculating the cost of equity for a project that might be set up in a foreign country. - (4 marks) 3 (c) There are three types of currency exposure for a multinational firm with a subsidiary in a country with an exchange rate that may not remain steady. Briefly define each of these types of exposure and suggest one remedy for each that the firm can apply to avoid or lessen bad outcomes for itself. + Note: Quitting the country will not be accepted as a valid answer. - Camarks) (d) In a sentence, please explain the concept of a sovereign debt default. (1 mark)