Multinational companies can reduce the chance of a loss from expropriation by:
A. increasing the required rate of return a foreign subsidiary is expected to earn.
B. establishing foreign subsidiaries in countries that have restrictive policies on repatriation of earnings.
C. financing the foreign subsidiary using fund raised in the host country.
D. obtaining insurance against economic losses associated with expropriation.
E. investing all the funds in a single foreign subsidiary.
Answer: D
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a. analysts cut corners when faced with less time to perform due diligence. b. analysts' ratings were inaccurate. c. many high ratings were based on inadequate historical data. d. analysts were overwhelmed with the volume and complexity of trades. e. most analysts were completely untrained and unprepared to do their jobs.
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Indicate whether the statement is true or false
Define negotiation and explain the basic steps in the negotiation process.
What will be an ideal response?
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