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 are an example of ________.

Question

Quizplus · Accepted Answer

Nationalization refers to a government taking control of a privately owned business or industry. In this scenario, the government taking over the entire electric utility industry in the country where Global Trading does business is an example of nationalization. Confiscation refers to the government taking possession of private property without compensation, while expropriation involves the government taking possession of foreign-owned assets with compensation. Globalization refers to the economic trend towards increased interconnectedness and interdependence of economies around the world, which is not relevant to the scenario.

Scenario: Risky Business Global Trading,LLC,is a Distributor of Computer Software and Hardware,steel and and Hardware,steel