Short of expropriation foreign governments may act to diminish the value of direct investments within their country by:

Question

Quizplus · Accepted Answer

All the given options can be used by foreign governments to diminish the value of direct investments within their country. Requiring part ownership at bargain prices by their own citizens can reduce the overall control and profit of the foreign business. Arbitrarily imposing taxes can increase the cost of doing business and reduce profitability. Limiting the amount of profit that can be taken out of the country can also decrease the return on investment for the foreign company. Therefore, all the options (A, B, and C) are correct.

Short of Expropriation Foreign Governments May Act to Diminish the Value