Expropriation and Political Risk

Reflection and Discussion Forum Week 6Assigned Readings:Chapter 7. International Law.Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:

1. Define expropriation, explain how it effects a county’s investments in foreign counties, and how counties respond to it.
2. Sprockets Unlimited, a United States corporation, is considering doing business in a foreign country that is known to have an unstable government and corrupt politicians; however, the market could be lucrative and greatly expand Sprockets Unlimited’s profits.  What consideration should Sprockets Unlimited consider before doing so?  Could the United States not allow Sprockets Unlimited to do business in this country?

[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student’s own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]

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Reflection on International Law and Expropriation

International law plays a pivotal role in regulating interactions between countries, especially in the realm of business and foreign investment. One of the most crucial concepts in international law is expropriation. Expropriation occurs when a government takes control of private property or assets, typically for public use. This action may be considered legal or illegal depending on whether it is carried out with compensation and in accordance with international law. Expropriation can significantly affect a country’s investments in foreign countries by undermining the confidence of foreign investors. Countries that face expropriation risk may experience reduced foreign investment, as investors fear the loss of their assets without proper compensation.

The primary method to address expropriation is for countries to provide clear legal protections and fair compensation to foreign investors. Many countries have adopted bilateral investment treaties (BITs) that outline provisions for compensation in the event of expropriation. This ensures that investors are protected from arbitrary government actions and