Actually the multiplication rule you cited, ALSO multiplies THE RISK of privacy being breached. You have less or more difficult options for litigation if your company/organisation were to have a breach on a cloud based service outside your national boundaries if the cloud service provider is beyond your borders.
This would differ if they are local where you have the assurance that they will abide to laws that apply to them and they are approachable physically should any issue arise. Now imagine taking Google to court...
