The capital structure is critical for both domestic and international companies. The capital structure is critical for the long-term survival of the company. Yes, the international capital structure is more complex than the capital structure of a domestic company. Multinationals raise money from multiple countries, formulate one global structure for the company, or develop a capital structure strategy based on national origin. Managing the capital structure is a complex process because it involves multiple economies, financial systems, and financial markets. When the composite structure is transferred into the multinational host country's financial statements, it will have various foreign exchange exposure. The capital structure's value and weight change daily based on the changes in the foreign exchange rate. The managers must constantly use hedging strategies to minimize the cash, credit outstanding, and inventory risk.

What are some of the risk management strategies multinationals use to manage the components of the capital structure?