Expropriation is most likely to occur in a country that has ________.

Question

Quizplus · Accepted Answer

Expropriation, which involves the government seizing privately owned assets, is more likely to occur in countries with political instability and frequent changes in government. In such countries, the political risk is higher, and the government may take drastic measures to maintain control or establish a new regime. Countries with stable economic growth and political consistency are less likely to engage in expropriation, as it can harm foreign investment and damage the country's reputation as a reliable place to do business. A and C are not directly related to expropriation, and the presence of numerous MNCs may indicate a higher level of stability and economic development in a country, making expropriation less likely.

Expropriation Is Most Likely to Occur in a Country That