ome cases, expropriation and confiscation are part of a larger nationalization process whereby the government takes over private property. Such nationalism is designed to provide greater economic benefit than would be derived by having the control of assets in the hands of foreigners. Sometimes, joint ventures are handed over to the domestic partner; in other situations, new ventures in the country cannot take place without a majority ownership by a domestic partner (Ball & McCulloch, 1992, p. 180).
Domestication occurs when a host government which was formerly supportive of foreign investment uses pressure to force a foreign owner to turnover partial (or total) ownership to a domestic concern. In some cases, the handover is to the government; in other cases, the handover is to a company or group of domestic citizens.
Any company considering foreign operations must take into account the political environment of the country in which they intend to operate, and the risk that
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