Which legal risk arises from a foreign nation taking the assets of a foreign company?

Expropriation refers to the act of a government taking private property for public use, with compensation, if any, to the owner. This typically occurs when a government seizes the assets of a foreign company operating within its borders. In situations where a foreign nation asserts its authority over the assets of a foreign business, expropriation is the relevant legal risk. It can take various forms, such as the outright seizure of property or imposition of control over operations without fair compensation.

Nationalization is somewhat related, as it involves a government taking control of an industry or sector, usually encompassing a more comprehensive approach than expropriation, which tends to focus on individual assets.

Business risk pertains to the challenges a company faces in its operational environment, such as market competition or economic downturns, while credit risk deals with the potential for a borrower to default on a loan or credit obligation. Therefore, these choices do not specifically capture the legal ramifications of a foreign government taking assets, making expropriation the most accurate choice within the context of the question.