_____ How Can the Risk of Investing in Foreign Countries

Multiple Choice

_____ How can the risk of investing in foreign countries (that is, the risk of not being able to recover one's investment) be greatly minimized?

A) Require the subsidiary to invest in monetary assets.
B) Finance foreign operations with foreign borrowings to the maximum extent possible.
C) Require the subsidiary to maintain monetary assets equal to monetary liabilities.
D) Make intercompany loans that are to be repaid in U.S. dollars as opposed to making investments in common stocks of the foreign units.
E) None of the above.