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Multinational corporations are exposed to higher risks that primarily come from two significant sources: (1) exchange rate risk and (2) political orcountry risk.An example ofwould be having property expropriated without adequate compensation.Which of the following are steps a company can take to reduce potential loss from expropriation? Check all that apply.Finance the subsidiary with local capital which reduces the local government's incentive to expropriate the multinational company'sproperty.O Lock in the dollar return by selling currency in the forward market.Structure operations so that the subsidiary is only valuable as a part of the integrated corporate system. This reduces the risk exposurefor the integrated company.

Question
Multinational corporations are exposed to higher risks that primarily come from two significant sources: (1) exchange rate risk and (2) political or
country risk.
An example of
would be having property expropriated without adequate compensation.
Which of the following are steps a company can take to reduce potential loss from expropriation? Check all that apply.
Finance the subsidiary with local capital which reduces the local government's incentive to expropriate the multinational company's
property.
O Lock in the dollar return by selling currency in the forward market.
Structure operations so that the subsidiary is only valuable as a part of the integrated corporate system. This reduces the risk exposure
for the integrated company.
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Multinational corporations are exposed to higher risks that primarily come from two significant sources: (1) exchange rate risk and (2) political or country risk. An example of would be having property expropriated without adequate compensation. Which of the following are steps a company can take to reduce potential loss from expropriation? Check all that apply. Finance the subsidiary with local capital which reduces the local government's incentive to expropriate the multinational company's property. O Lock in the dollar return by selling currency in the forward market. Structure operations so that the subsidiary is only valuable as a part of the integrated corporate system. This reduces the risk exposure for the integrated company.

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Expropriation is the act in which taking  over of privately owned property by the government.While, eminent domain is the act in which taking over of privately owned property by...

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