The political threats to MNCs' foreign investments are more likely to be 'creeping expropriation' than conventional expropriation.

Question

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Creeping expropriation refers to gradual measures taken by the host government or other actors that ultimately limit or impair an MNC's ability to control or benefit from its foreign investments, without physically seizing the assets. This type of threat is becoming more common due to changes in the political landscape, such as rising nationalism and protectionism, and can take the form of regulatory changes, discriminatory practices, or arbitrary decisions that erode the value or profitability of the investments. Conventional expropriation, on the other hand, involves the outright seizure or nationalization of assets, which is now less common due to international norms and legal protections.

The Political Threats to MNCs' Foreign Investments Are More Likely