Get premium membership and access questions with answers, video lessons as well as revision papers.

Ways in which the investor can minimize risk in an expropriated environment

      

Ways in which the investor can minimize risk in an expropriated environment

  

Answers


Faith
If expropriation is a real possibility then the investor should seek to minimise risk by:
i) Relatively rapid depreciation of assets and repatriation of funds by manipulated transfer
prices
ii) Establish a local supply infrastructure so that any adverse action damages the host
economy
iii) Raise as much investment capital in the country as possible
iv) Retain control of critical inputs and minimise local stocks of these.
However these measures may increase the risk of expropriation or reduce the potential
success of the venture.
Titany answered the question on November 25, 2021 at 11:59


Next: Define expropriation in international trade
Previous: Checklist for assessing political vulnerability in international business environment

View More International Purchasing Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions