Chapter 06 - The Political Environment: A Critical Concern
8. Economically prosperous countries do not display strong nationalistic feelings.
9. The most severe political risk is domestication.
10. The ultimate goal of domestication is to force foreign investors to share more of the
ownership, management, and profits with nationals than was the case before domestication.
11. Expropriation and nationalization often lead to nationalized businesses that are efficient,
technologically strong, and competitive in world markets.
12. When a nation faces shortages of foreign exchange import controls are established.
13. Risks of confiscation and expropriation appear to have lessened over the last two decades.
14. Today, many countries have domestication as a condition for investment.
15. Price controls are normally targeted at nonessential products.