How should a MNC adjust capital budgeting for investment in a country where the chance of a government takeover is relatively high? Should the risk of takeover deter a MNC from making an investment or change the type of investment? Provide a specific example.Is risk of a government takeover high in the country your selected? Explain.
A MNC should adjust its capital budgeting for investment in a countrywhere the chance of a government takeover is relatively high by balancing its debtequity ratio accordingly. The risk of…
