In the early 1970s,McKesson,an American firm,owned 31 percent of the shares of stock in the Iranian firm,Pak Dairy.During the Iranian revolution in 1979,the Iranian government seized and took full control of Pak Dairy by force.They did not pay McKesson for their losses.This is an example of a ____.

Question

Quizplus · Accepted Answer

Confiscation is the act of a government seizing private property without compensation. In this case, the Iranian government seized McKesson's ownership stake in Pak Dairy without providing any compensation, making this an example of confiscation. Quotas are limits on the amount of a specific product that can be imported or exported, and boycotts involve a voluntary refusal to engage in business or trade. Neither of these terms applies to the situation described.

In the Early 1970s,McKesson,an American Firm,owned 31 Percent of the Shares