With respect to the political risk that can be faced by a company seeking to invest abroad, which action is most severe?
A) confiscation
B) expropriation
C) domestication
D) exchange controls
E) local-content laws

Question

Quizplus · Accepted Answer

Confiscation is the most severe form of political risk because it involves the government taking ownership of a company's assets without any compensation to the company. This can result in a total loss of the company's investments in that country.

With Respect to the Political Risk That Can Be Faced