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A Risk Unique to Firms with Direct Investment in a Foreign Country

question 99

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A risk unique to firms with direct investment in a foreign country is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n)


Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Shortage

A situation where the demand for a good or service exceeds its supply in the market, often leading to increased prices.

Initial Equilibrium

The initial state of balance where the supply and demand curves intersect, determining the market price and quantity before any external changes.

Equilibrium Price

The market price at which the quantity of goods demanded is equal to the quantity of goods supplied.

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