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Confiscation, expropriation, and domestication are classified as?

1) political risks.
2) social risks.
3) market risks.
4) environmental risks.
5) pricing risks.

1 Answer

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Final answer:

Confiscation, expropriation, and domestication related to property are considered political or governmental risks, involving government control over private assets or commodities.

Step-by-step explanation:

Confiscation, expropriation, and domestication are actions typically associated with government intervention or regulation concerning property rights. These terms describe various ways in which a governmental entity might assert control over private assets or commodities, which can impact businesses operating within that government's jurisdiction.

Confiscation refers to the government taking property without compensation, often for legal or punitive reasons. Expropriation is similar but usually involves compensation; it's often used for public projects or in the public interest. Domestication in this context could refer to the process by which assets are brought under national control, although the term is more commonly associated with the taming of animals. These actions have the potential to present significant risks to businesses and are classified as political or governmental risks, rather than market or pricing risks.

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