1. Identify political factors that might affect the risk to do business in a country.
2. Identify financial factors that might affect the risk to do business in a country.
3. Discuss the statement: Any level of risk can be OK if the potential returns are sufficiently high.
4. SEL in Washington State plans to establish a European subsidiary. SEL's financial managers expect that the euro will appreciate over the next few years. How might this affect SEL's decision regarding the use of headquarters' retained earnings or its subsidiary's retained earnings as sources of capital?