Expropriation
From Free net encyclopedia
Expropriation is the act of removing from control the owner of an item of property. The term is used to both refer to acts by a government or by any group of people.
It is commonly reffered to as the act of removing property from an owner especially by public authority - for example, expropriated the property owners who lived in the path of the new highway.
It is sometimes used in the context of redistribution - for example, taking wealth from the rich to feed the poor.
Expropriation is one of the political risks involved with Foreign Direct Investment. It is characterized by confiscation of the foreign asset, and a pittance payment. This payment is generally a formality, and not an acceptable reparation. Other political risks include confiscation (without payment), blockage of funds, breech of contract, frozen assets, operational restrictions, and/or heavy taxation as well as frequent tax probing.