The threat of expropriation creates an incentive for the multinational firm to minimize inventory holdings in certain countries and to bring in goods only as needed.

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EMMANUEL OWUSU ANSAH · Accepted Answer

Final Answer : True, Explanation :  When there is a threat of expropriation, the multinational firm may be hesitant to invest heavily in a particular country. This can lead to a strategy of minimizing inventory holdings in that country and bringing in goods only as needed to reduce the risk of losing their assets.

The threat of expropriation creates an incentive for the multinational firm to minimize inventory holdings in certain countries and to bring in goods only as needed.

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