Brazil Would Like to Increase Its Control and Ownership of Foreign

question 82

Essay

Brazil would like to increase its control and ownership of foreign investments in its country. However, Brazil does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Brazil could follow that would meet the aforementioned objective.

---

Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares in the corporate charter.

Market Price

The ongoing rate for buying or selling an asset or service in the open market.

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset on a company's balance sheet.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used to pay dividends.