An example of _____________ is when India changed laws in the 1970s and caused several foreign MNEs to leave.

Question

Quizplus · Accepted Answer

Ownership risk refers to the risk that a host country may seize control or expropriate the assets of a foreign firm. In this case, the change in laws in India caused foreign multinational enterprises (MNEs) to leave, indicating that there was a risk to their ownership of assets in the country. Transfer risk refers to the risk that a country may impose restrictions on the transfer of funds, while title risk refers to the risk of legal challenges to a firm's ownership of assets. Neither of these risks is the best choice to describe the situation in India in the 1970s.

An Example of _____________ Is When India Changed Laws in the 1970s