Multinational Companies Can Reduce the Chance of a Loss from Expropriation

Multiple Choice

Multinational companies can reduce the chance of a loss from expropriation by:

A) increasing the required rate of return a foreign subsidiary is expected to earn.
B) establishing foreign subsidiaries in countries that have restrictive policies on repatriation of earnings.
C) financing the foreign subsidiary using fund raised in the host country.
D) obtaining insurance against economic losses associated with expropriation.
E) investing all the funds in a single foreign subsidiary.