13. A previously undertaken project in a foreign country may no longer be feasib
ID: 2765793 • Letter: 1
Question
13. A previously undertaken project in a foreign country may no longer be feasible because: CHOSE BEST ANSWER
a.
interest rates have declined.
b.
the MNC's cost of capital has decreased.
c.
the host government has increased its tax rates substantially.
d.
exchange rate projections changed from a depreciation to an appreciation of the foreign currency.
a.
interest rates have declined.
b.
the MNC's cost of capital has decreased.
c.
the host government has increased its tax rates substantially.
d.
exchange rate projections changed from a depreciation to an appreciation of the foreign currency.
Explanation / Answer
Many U.S. firms have chosen to invest overseas, because of lower labor costs and favorable tax rates.
C.the host government has increased its tax rates substantially.
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