Question

Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment? a. Infrastructure b. Economic c. Technological d. Sociocultural e. Legal-political

Answer 1

Answer:

The correct answer is e. Legal-political.

Explanation:

Any law, order or administrative action of the Host Country resulting in the permanent and total cessation of the investment activities in the Host Country.

• Causing the loss of ownership of shares and related assets.
• Permanently depriving the company of the holding of foreign shares or its fixed and / or current assets, including retained earnings and collectible amounts between companies.
• Rendering of loans between bad companies made on foreign subsidiaries.
• Leaving the company legally obligated to pay loans made to the foreign subsidiary expropriated by third parties but guaranteed by their company. Rejection of the Contract by the Public Buyer (eg, Government)