________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.
A)Inconvertibility
B)Expropriation
C)Business income risk
D)None of the above

Question

Quizplus · Accepted Answer

Expropriation is the risk of the host country taking control or ownership of a foreign company's assets. This prevents the foreign affiliate from exercising control over the firm's assets. Inconvertibility is the risk associated with the inability to convert local currency into foreign currency. Business income risk is the risk of profitability due to factors such as competition and market conditions.

________ Is the Risk That the Host Government Will Take