Question

Which of the following statements is true about expropriation?

Expropriation of foreign enterprises by developing countries were rare in the old days.

Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms.

Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.

Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals.

Answer 1

Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation.

Step-by-step explanation:

Governments are more interested in this kind of business, as often, in developing countries, extractive and agricultural create genuine richness, usually more than others as retail or manufacturing, for example. On the other hand, regarding utilities and transportation, expropriation is made as a consequent of populism measures and not for wealth creation.