Companies Can Reduce Loss from Expropriation

question 30

Multiple Choice

Companies can reduce loss from expropriation:

• A) by expecting low returns from high risk foreign subsidiaries.
• B) by establishing foreign subsidiaries in countries with volatile exchange rates.
• C) by financing the foreign subsidiary using foreign currencies.
• D) by obtaining insurance against economic losses from expropriation.
• E) by investing all the funds in one foreign subsidiary.

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Definitions:

Unemployment Compensation

Money paid by the government to unemployed workers who meet certain eligibility requirements.

Salaried Quarters

A housing or lodging provision as part of an employment compensation package, often found in academic, military, or corporate settings.

Weekly Salary

The total amount of money earned by an employee in a week, often calculated by dividing an annual salary by 52.

Hourly Wage

Compensation paid to an employee calculated on a per-hour basis.