The effect of an imbalance in the BOP is the same for countries on a fixed exchange rate regime as for those on a floating exchange rate regime.
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For purposes of international capital budgeting, parent cash flows often depend on the form of financing. Thus, we cannot clearly separate cash flows from financing decisions, as we can in domestic capital budgeting.
A national securities market is segmented if the required rate of return on securities in that market differs from comparable securities traded in other, unsegmented markets.
If a central bank wishes to "defend its currency," it might follow an expansionary monetary policy, which would drive real interest rates up.
Relative to MNEs, purely domestic firms tend to have GREATER political risk.