Part 2. Multiple Choice (8 points each) 1. Each of the following is a factor affecting target valuation except for: A. Target's previous cash flows B. Target's local political conditions C. Number of staff employed at the target D.Managerial talent of the target 2. MNCs apply which type of analysis to compare the benefits and costs of international projects? A. Internal rate of return B. Currency comparison C. Multinational capital budgeting D. Payback analysis 3. Political risk characteristics include all but which of the following? A. Currency inconvertibility B. Inflation levels C. Blockage of fund transfers D. Attitudes of consumers in the host country 4. By diversifying sales (and possibly even production) internationally, a firm can make its net cash flows: A. unpredictively volatile B. more volatile C. less volatile D. none of the above 5. Which type of risk represents an overall risk assessment of a country and considers all variables that affect country risk except those that are firm-specific? A. micro-assessment of country risk B. digital-assessment of country risk C. cultural-assessment of country risk D. macro-assessment of country risk