Suppose you are the head of a major oil company and are considering building a new...

Transcribed Image Text:

Suppose you are the head of a major oil company and are considering building a new oil rig in a foreign country with large oil reserves. The government of that country, however, has a history of seizing infrastructure owned by foreign countries. How would this history affect your decision to build physical capital there? Suppose you are the head of a major oil company and are considering building a new oil rig in a foreign country with large oil reserves. The government of that country, however, has a history of seizing infrastructure owned by foreign countries. How would this history affect your decision to build physical capital there?

Answer rating: 100% (QA)

The history of the foreign government seizing infrastructure owned by foreign countries would significantly impact the decision to build a new oil rig ... View the full answer