________ occurs when the local government seizes the foreign-owned assets of the MNC and provides inadequate compensation.

Question

Quizplus · Accepted Answer

Expropriation is the act of a government seizing private property, in this case, the foreign-owned assets of the MNC. It can happen without compensation or with inadequate compensation. This is different from privatization, which is the process of an organization or government transferring ownership of a business or industry from the public sector to the private sector. Private action refers to illegal actions taken by individuals or groups to harm a foreign company's operations, while repatriation refers to the process of returning profits or assets to the parent company in the home country.

________ Occurs When the Local Government Seizes the Foreign-Owned Assets