When making foreign direct investments, companies that purchase insurance against the possible expropriation of their assets by host governments is an example of which sector of the international business environment?
A) Political and legal
B) Sociocultural
C) Technological
D) Economic
E) Infrastructure

Question

Quizplus · Accepted Answer

Purchasing insurance against the possible expropriation of assets by host governments is a precautionary measure taken by companies to mitigate political and legal risks associated with foreign direct investment. Therefore, it is an example of the political and legal sector of the international business environment.

When Making Foreign Direct Investments, Companies That Purchase Insurance Against