Which of the Following Statements Is True About Expropriation

question 66

Multiple Choice

Which of the following statements is true about expropriation?

• A) Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.
• B) Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms.
• C) Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals.
• D) Expropriation of foreign enterprises by developing countries were rare in the old days.

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Definitions:

Rate of Return

The positive or negative return on an investment during a designated period, stated in terms of a percentage of the original investment's expense.

Invest

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Discount Rate

A percentage used to calculate the present value of future cash flows or investments.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, discounting future amounts to their present values.