A risk unique to firms with direct investment in a foreign country is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n)
A) hostile takeover.
B) political bias.
C) appropriation.
D) expropriation.

Question

A risk unique to firms with direct investment in a foreign country is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n)
A) hostile takeover.
B) political bias.
C) appropriation.
D) expropriation.

Quizplus · Accepted Answer

Expropriation refers to the government's takeover of a foreign firm's assets. Hostile takeover refers to the acquisition of a company by another company without the approval of the target company's management, and political bias does not refer specifically to the government's takeover of a company's assets. Appropriation is a general term that refers to the act of taking something for one's own use, but it may not specifically refer to the government's takeover of a company's assets.

A Risk Unique to Firms with Direct Investment in a Foreign Country