When companies evaluate project investment in foreign nations, they also have to consider the additional risk that foreign projects are exposed to compared to domestic projects, such as exchange rate risk and political risk. Expropriation is one such risk where the government of a country takes away a private business from its owners without appropriately compensating the owners.

Which of the following actions should companies take to prevent expropriation? Check all that apply.

_____Partner with local companies to get access to local financing.

_____Use transfer pricing so that the subsidiary company pays maximum taxes to the foreign government.

_____Block the amount of cash flow coming from the subsidiary firm to the parent company.

_____Structure the operations of the subsidiary such that the subsidiary derives much of its value only via its relationship or integration with the parent company.