With Regard to the Financial Structure of a Foreign Subsidiary

Multiple Choice

With regard to the financial structure of a foreign subsidiary,

A) using local financing can reduce political risk.
B) a MNC that finances a foreign investment with home-country equity faces greater risk of expropriation than if it had financed the investment with at least some local debt or equity.
C) there may be advantages other than a reduction in political risk that encourage MNCs to finance foreign subsidiaries with local money.
D) all of the options