After reading this chapter you should be able to:

Understand the nature of country risk with a special focus on emerging markets.

Understand how country risk relates to international investments.

Know how to estimate the cost of capital and the future value of an international investment and understand the additional challenges in an emerging markets situation.

Understand how international managers decide on the mix of debt and equity for the capital structure of an MNC's subsidiary.

Know the basic methods of payment in international trade.

Be familiar with export financing options.