True or False (1 point each) nimi w Variation and complexity in global tax systems create opportunities for many MNC's to increase corporate value through effective tax planning. 2. Asset expropriation and breach of contract are poor examples of political risk. Acquisitions of companies in emerging markets can be riskier because of difficulty (or expense) in conducting adequate due diligence. The reduction of US corporate income tax to 21% from 35% has not affected flows of international capital investments. Capital budgeting analysis for foreign projects is exactly the same as the analysis of domestic projects. Corporate Governance is integrally connected with Financial Risk Management. Value Added Taxes (VAT) and tariff's operating cash flows, while income taxes primarily impact cost of capital for multinational corporations. 8. Segmentation of Global Financial Markets and disequilibria in pricing of currency forwards always increase the cost of capital for MNC's. Corporate governance deals only with change of control issues. 10. Multinational corporations should attempt to forecast currency exchange rates in making currency hedging decisions Cor