If a Government Was to Seize the Assets of a MNC

question 18

Multiple Choice

If a government was to seize the assets of a MNC and not provide adequate compensation to the owners, the government would be following which practice?

• A) Nationalization
• B) Expropriation
• C) Repatriation
• D) Terrorism

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Definitions:

Elastic

A characteristic of a demand or supply curve which shows a high responsiveness to changes in price.

Inelastic

Refers to a condition in which the demand or supply of a product or service remains largely unaffected by variations in its price.

Pure Monopolist

A market scenario where a single company or entity exclusively controls the entire supply of a particular product or service, without any close substitutes or competition.

Socially Optimal

A condition or outcome that maximizes societal welfare, considering both efficiency and equity among members of society.