9. Investing overseas Aa Aa Multinational corporations are exposed to higher risks that primarily come from two significant sources: (1) exchange rate risk and (2) political or country risk. C An example of would be the risk of being forced to charge extremely low prices for certain products and services, affecting a company's cash flows. Which of the following are steps a company can take to reduce potential loss from expropriation? Check all that apply. 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 Finance the subsidiary with local capital which reduces the local government's incentive to expropriate the multinational company's property