International Capital Budgeting

International Capital Budgeting is the process of evaluating investment opportunities in different countries. It involves analyzing potential projects, considering factors like economic conditions, currency exchange rates, political stability, and local regulations. Companies assess the expected returns and risks associated with investments abroad to make informed decisions. This is crucial for businesses seeking to expand their operations internationally, as it helps them allocate resources effectively and maximize profitability while minimizing financial risks. Essentially, it's about making smart investment choices on a global scale.