Chapter 18.6, Problem 18.6ACQ

Summary Introduction

To determine: The political risk.

Introduction:

The companies with important foreign operations are often termed as the international corporations or the multinational companies. The multinational companies have to consider various financial factors that do not affect the domestic companies. The various factors are the rates of interest that vary from one country to another, foreign exchange rate, foreign tax rate, typical accounting methods, and the foreign government intervention.