QUESTION 10 2.5 points One of the advantages of MNCs is international diversification which helps with risk reduction. Theoretically (and even empirically), which strategy is best when it comes to international diversification and risk reduction? Invest in markets where project cash fiows are negatively correlated with project cash flows where existing subsidiaries are based. Invest in countries where aggregate demand exceeds aggregate supply Invest in countries where project cash flows fluctuate the same way as projects in countries where existing subsidiaries are based. Establish a subsidiary in a market where the local currency is strong and expected to remain strong over time