1. What does a MNC have to consider that a domestic company does not, and how does this impact capital budgeting? in addition to the complications encountered in doing a capital budgeting analysis for a domestic corporation, there are several other variables that must be taken into consideration when well deal with multinational capital budgeting (Keats & Young, 2009). These variables include intercompany fund flows, inflation rates, exchange rate, tax differences, differences in cash flows, cost of capital, and the final project valuation.
2. What is globalization, and what are some of the challenges that multinational corporations (MNCs) face that makes it them different from running a domestic company?