Management contracts are common when a host government expropriates part or all of a foreign-owned company's holdings in its country.

Question

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When a foreign-owned company's holdings are expropriated by the host government, a management contract may be put in place where the host government temporarily takes control of the company's operations and management. This allows the foreign company to retain ownership while the host government manages the company and provides compensation for the expropriation.

Management Contracts Are Common When a Host Government Expropriates Part