Question: Using a specific firm as a concrete example, how can the following affect the capital budgeting decisions of the multinational company you selected? --Exchange rate

Using a specific firm as a concrete example, how can the following affect the capital budgeting decisions of the multinational company you selected? --Exchange rate risk

-Political risk

-Tax law differences

-Transfer pricing

-A strategic rather than a strict financial viewpoint

For the firm you selected, which of these would be the most important consideration? Why?

How might these ideas differ if the firm you chose were part of a different industry?

How might these your ideas change with a small business seeking to engage in multinational commerce?

What specific capital budgeting factors would discourage a firm from entering multinational commerce? Why? Provide a concrete example.

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