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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

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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 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. Block the amount of cash flow coming from the subsidiary firm to the parent company. Finance the subsidiary with local capital. Use transfer pricing to buy raw materials from the parent company at the lowest possible price to minimize the profits the parent company can make. Obtain insurance against economic losses from expropriation

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