1). Risk-stemming from fluctuations in exchange rate loans hover constantly on the horizon of foreign investment.
2). In view of the higher risk, a firm contemplating foreign investment would naturally expect a higher rate of return.
3). A multinational company may be accused of 'profiteering' even when it may simply be following the sound financial practice of asking for a higher rate of return commensurate with risks characterizing the project.
4). In addition, a foreign investment is subject to discriminatory treatment and selection control in various forms.
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