Which of the Following Strategies Will Help in Minimizing Political

Multiple Choice

Which of the following strategies will help in minimizing political risk in international capital budgeting decisions?

A) by hedging the cash flows using currency futures and options
B) structuring the financing of such investments as equity rather than as debt
C) structuring the financing of such investments as debt rather than as equity
D) financing the project, in whole or in part, in domestic currency