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3 years ago

Three methods used by government to seize the assets of foreign firms?

Advanced Placement (AP)

1 answer:

Over [174]3 years ago

8 0

Answer:

Three methods used by government to seize the assets of foreign firms are : Expropriation, Confiscation and Domestication

Explanation:

Expropriation presents the seizure of foreign assets by a host government with payment of compensation and certain fund available to the owners of the assets.

The difference in Confiscation process is that there is no compensation or any kind of funds to any foreign firm by a host government.

Domestication process provides governments with partial ownership transfer and companies needs to focus on major local productionthat is kept in the host country. Local staff and managers needs to be hired and products or services should reflect the needs of local market.

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