To minimize exposure to political risk, a multinational firm may establish a joint venture with a local entrepreneur or a group of multinationals, or A. purchase an insurance policy from the Overseas Private Investment Corporation (OPIC). B. purchase an insurance policy from the Foreign Credit Insurance Association (FCIA). C. hedge in the Eurodollar market. D. any combination of the options.
To minimize exposure to political risk, a multinational firm may establish a joint venture with a local entrepreneur or a group of multinationals, or A. purchase an insurance policy from the Overseas Private Investment Corporation (OPIC). B. purchase an insurance policy from the Foreign Credit Insurance Association (FCIA). C. hedge in the Eurodollar market. D. any combination of the options.
ChapterP4: Part 4: Long-term Asset And Liability Management
Section: Chapter Questions
Problem 6Q
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To minimize exposure to political risk, a multinational firm may establish a joint venture with a local entrepreneur or a group of multinationals, or
A. purchase an insurance policy from the Overseas Private Investment Corporation (OPIC).
B. purchase an insurance policy from the Foreign Credit Insurance Association (FCIA).
C. hedge in the Eurodollar market.
D. any combination of the options.
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