A risk unique to firms with direct investment in a foreign county is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n):

Expropriation.

Explanation:

Expropriation occurs when the government takes over a business usually against the wishes of the owners. This is done for the good of the economy. For example if properties are bought for the purpose of building railways, airports, or roads.

The owner of the property is compensated for takeover of their property.

Through the doctrine of eminent domain governments can take over private property and compensate the owners with prices consistent with fair market value of the property.

expropriation

Explanation: The act of expropriation involves the surrender of a claim to private property; the act of depriving of private propriety rights. Expropriation is the act of a government (municipalities, government subdivisions, private persons or corporations by legislative delegation) taking privately owned property usually against the wishes of the owners, apparently to be applied to public use. It is however not limited to real property as personal property and intangible property can be taken over too usually without accompanying compensation plans even though the reverse should be the case.

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