Felipe has found that if he invests in the global capital market, he has a wider range of investment opportunities than a purely domestic capital market. If Felipe decides to invest in this market, he should be aware that Multiple Choice he will be exposed to significantly greater risk. he can easily set up shell operations in tax havens to escape significant tax obligations. he will not have to worry about translation or transaction exposure. he can reduce their risk to below what could be achieved in a strictly domestic market