A risk unique to firms with direct investment in a foreign county 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

Quizplus · Accepted Answer

Expropriation is the potential takeover of a firm's assets by the government of a foreign country. Hostile takeover refers to the acquisition of a company through the purchase of its shares by an outsider against the wishes of the management, while political bias is the unfair treatment of a business due to political reasons. Appropriation is the act of taking possession of something, often through legal means.

A Risk Unique to Firms with Direct Investment in a Foreign