CADE International has foreign operations in Taiwan,India,and China.The firm pays an annual insurance premium to the Overseas Private Investment Corporation.The firm is most likely protecting itself from ________.

Question

Quizplus · Accepted Answer

The Overseas Private Investment Corporation (OPIC) provides political risk insurance to US-based companies that engage in foreign direct investment. This insurance protects against political actions such as nationalization, expropriation, and political violence. Given that CADE International has operations in Taiwan, India, and China and pays an annual insurance premium to OPIC, it is most likely protecting itself from the risk of nationalization, which is the act of a government taking control of privately owned assets without the owner's consent.

CADE International Has Foreign Operations in Taiwan,India,and China