Firms overseas have almost total legal protection against government acts in the countries in which they operate, under the act of state doctrine.

Question

Quizplus · Accepted Answer

The act of state doctrine does not provide complete legal protection to firms operating overseas. It is a legal principle that defers to the actions of foreign governments in their own jurisdictions and does not allow domestic courts to question the validity of those actions. However, this does not mean that firms are immune to government acts or have absolute legal protection. They still have to operate under the laws and regulations of the host country, and may be subject to legal challenges and penalties if they violate those laws.

Firms Overseas Have Almost Total Legal Protection Against Government Acts