International finance Questions

I have three questions with answers, and I need each one of them to be paraphrased in 3 pages.

The questions :
1.If a multinational firm is able to diversify its sources of cash inflow so that it receives those flows from several countries and in several currencies, do you think that diversification tends to increase or decrease its weighted average cost of capital?

2.The following operating strategies, among others, are expected to reduce damage from political risk. Explain each and how it reduces damage.
a. Local sourcing
b. Facility location
c. Control of technology
D. Thin equity base
E. Multiple-source borrowing

3. Explain the factors that make capital budgeting for a foreign project more complex than for a domestic one. How would one adjust the analysis for these factors?

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