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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
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. Use transfer pricing so that the subsidiary company pays maximum taxes to the foreign government. Partner with local companies to get access to local financing. Repatriate the maximum amount of cash from the subsidiary to the foreign government. Obtain insurance against economic losses from expropriation
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