Chapter 6: CountryRisk
FIN-763, Spring 2008
Boston University, The Metropolitan College
FIn 763: Lecture 2
PART 1: THE MEASUREMENT OF POLITICAL RISK
The consequences of political risk
Case Studies in Financial Management
The aim of the course is to provide students with cases in business management from point of
view of essential knowledge in corporate finance about project and investment valuating,
mergers and acqui
1) Why might a producer want to own resources located in another country, rather than buy
them in the open market?
2) What are the limitations of licences as an alternative to FDI?
3) What role do market imperfections play in FDI?
Which of the reas
1. Financing Decision. Veer Co. is a U.S. based MNC that has most of its
operations in Japan. Since the Japanese companies with which it competes
use more financial leverage, it has decided to adjust its financial leverage to be
in line with theirs. W