SA IBL TB8e Ch18
CHAPTER 18—TAKINGS AND NATIONAL CONTROLS ON FOREIGN DIRECT INVESTMENT
TRUE/FALSE
1. North American and Western European countries generally accept the modern traditional theory of the taking of private property as customary international law.
ANS: T PTS: 1
2. Cases involving the payment of compensation for the expropriation of property must be settled in courts of law.
ANS: F PTS: 1
3. The political risk of investing in developed countries is roughly comparable with the risks of investing in the developing countries.
ANS: F PTS: 1
4. Classical theories on the taking of property of foreign citizens by governments were originally developed to protect the interests of European investments abroad.
ANS: T PTS: 1
5. Under the laws of most legal systems, governments do not have the authority to take private property for public use.
ANS: T PTS: 1
6. The modern traditional theory recognizes the sovereign's right to nationalize foreign-owned property but places conditions on the exercise of that right.
ANS: T PTS: 1
7. The term nationalization usually applies to the expropriation of an entire industry or natural resource of a nation.
ANS: T PTS: 1
8. Investors receiving compensation for the nationalization of property in a foreign country generally obtain payment in their own currency, thus avoiding any currency risk.
ANS: F PTS: 1
9. Insurance is available from the U.S. government to U.S. firms against the expropriation of their property by a foreign government.
ANS: T PTS: 1
10. OPIC insurance does not provide coverage against the loss of assets by U.S. firms in the case of the nationalization of farms or factories held in a foreign country.
ANS: F PTS: 1
11. OPIC insurance is provided to U.S. firms operating abroad by private American insurance companies.
ANS: F PTS: 1
12. An American firm that builds a factory abroad for the building of component parts to be shipped back to the United States does not qualify for OPIC insurance.
ANS:
TRUE/FALSE
1. North American and Western European countries generally accept the modern traditional theory of the taking of private property as customary international law.
ANS: T PTS: 1
2. Cases involving the payment of compensation for the expropriation of property must be settled in courts of law.
ANS: F PTS: 1
3. The political risk of investing in developed countries is roughly comparable with the risks of investing in the developing countries.
ANS: F PTS: 1
4. Classical theories on the taking of property of foreign citizens by governments were originally developed to protect the interests of European investments abroad.
ANS: T PTS: 1
5. Under the laws of most legal systems, governments do not have the authority to take private property for public use.
ANS: T PTS: 1
6. The modern traditional theory recognizes the sovereign's right to nationalize foreign-owned property but places conditions on the exercise of that right.
ANS: T PTS: 1
7. The term nationalization usually applies to the expropriation of an entire industry or natural resource of a nation.
ANS: T PTS: 1
8. Investors receiving compensation for the nationalization of property in a foreign country generally obtain payment in their own currency, thus avoiding any currency risk.
ANS: F PTS: 1
9. Insurance is available from the U.S. government to U.S. firms against the expropriation of their property by a foreign government.
ANS: T PTS: 1
10. OPIC insurance does not provide coverage against the loss of assets by U.S. firms in the case of the nationalization of farms or factories held in a foreign country.
ANS: F PTS: 1
11. OPIC insurance is provided to U.S. firms operating abroad by private American insurance companies.
ANS: F PTS: 1
12. An American firm that builds a factory abroad for the building of component parts to be shipped back to the United States does not qualify for OPIC insurance.
ANS: