Expropriation, explain how it effects a county’s investments in foreign counties

by | Feb 10, 2025 | Essays

Define expropriation, explain how it effects a county’s investments in foreign counties, and how counties respond to it.
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?

 

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Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Expropriation: A Risk for Foreign Investment

Definition:

Expropriation is the act of a government seizing private property, usually for public use, with or without compensation to the owner. It’s a significant risk for businesses operating in foreign countries, as it can lead to the loss of assets and investments.

Effects on Foreign Investment:

Expropriation creates a climate of uncertainty and risk that discourages foreign investment. When companies fear that their assets could be seized without fair compensation, they are less likely to invest in a country, hindering economic growth and development. This can lead to:

  • Reduced FDI: Foreign direct investment flows decrease as companies become wary of the risks involved.

Expropriation: A Risk for Foreign Investment

Definition:

Expropriation is the act of a government seizing private property, usually for public use, with or without compensation to the owner. It’s a significant risk for businesses operating in foreign countries, as it can lead to the loss of assets and investments.

Effects on Foreign Investment:

Expropriation creates a climate of uncertainty and risk that discourages foreign investment. When companies fear that their assets could be seized without fair compensation, they are less likely to invest in a country, hindering economic growth and development. This can lead to:

  • Reduced FDI: Foreign direct investment flows decrease as companies become wary of the risks involved.
  • Economic Instability: The lack of foreign investment can negatively impact a country’s economic stability, leading to job losses and reduced economic activity.
  • Damaged Reputation: Countries that engage in expropriation often suffer damage to their international reputation, making it harder to attract future investment.

How Countries Respond:

Countries employ various strategies to respond to the risk of expropriation:

  • Bilateral Investment Treaties (BITs): Countries sign BITs with each other to protect their investors’ assets. These treaties often include provisions for fair compensation in case of expropriation and mechanisms for dispute resolution.
  • Multilateral Agreements: Organizations like the World Bank offer investment insurance and dispute settlement mechanisms to mitigate the risks of expropriation.
  • Political Risk Insurance: Companies can purchase political risk insurance to protect their investments against losses due to political events, including expropriation.
  • Diversification: Companies can diversify their investments across multiple countries to reduce the impact of expropriation in any single location.

Sprockets Unlimited: Considerations for Risky Markets

Sprockets Unlimited’s situation highlights the challenges of operating in countries with unstable governments and corruption. Before venturing into this foreign market, they should carefully consider the following:

  • Due Diligence: Conduct thorough research on the country’s political and economic climate, legal framework, and track record on property rights.
  • Risk Assessment: Evaluate the likelihood of expropriation, political instability, and corruption, and assess the potential impact on their investment.
  • Contractual Safeguards: Negotiate strong contracts with the host government that include provisions for fair compensation in case of expropriation and mechanisms for dispute resolution.
  • Political Risk Insurance: Obtain political risk insurance to protect their investment against potential losses.
  • Joint Ventures: Consider partnering with a local company to gain a better understanding of the market and share the risks.
  • Ethical Considerations: Evaluate the ethical implications of operating in a country with corrupt practices and ensure their operations align with their company’s values.

Can the U.S. Prevent Sprockets Unlimited from Operating in This Country?

The U.S. government generally does not prevent U.S. companies from doing business in foreign countries, even those with unstable governments or corruption. However, it can:

  • Issue Warnings: The U.S. Department of State can issue travel advisories or warnings about the risks of doing business in certain countries.
  • Impose Sanctions: In cases of severe human rights violations or other egregious actions, the U.S. government can impose sanctions that restrict or prohibit U.S. companies from doing business in a particular country.
  • Deny Export Licenses: For certain sensitive technologies or goods, the U.S. government can deny export licenses, effectively preventing U.S. companies from exporting those items to a specific country.

Ultimately, the decision of whether to do business in a foreign country rests with the company. However, Sprockets Unlimited must carefully weigh the potential risks and rewards before making a decision.

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