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Chapter Concepts
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  1. The multinational corporation is one that crosses international borders to gain expanded markets.
  2. A company operating in many foreign countries must consider the effect of exchange rates on its profitability and cash flow.
  3. Foreign exchange risk can be hedged or reduced.
  4. Political risk must be carefully assessed in making a foreign investment decision.
  5. The potential ways for financing international operations are much greater than for domestic operations and should be carefully considered.





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