Scenario: Risky Business
Global Trading, LLC is a distributor of computer software and hardware, steel and copper scrap, and telephone and electric utility equipment. Involved in three very different types of industries, the company faces many types of risks in its global business.
-Global Trading just learned that the government in one country in which it does business has taken over the entire electric utility industry. The government's actions can be described as ________.

Question

Quizplus · Accepted Answer

Nationalization is the best choice as it refers to the government taking over the entire industry or sector of an economy, which is exactly what has happened to Global Trading's business in this scenario. Confiscation refers to the government seizing private property without compensation, while expropriation refers to the government taking over a specific asset or property with compensation. Globalization refers to the process of increased interconnectedness between countries and economies.

Scenario: Risky Business Global Trading, LLC Is a Distributor of Computer Software and Computer