Domestication' can be a potential political risk for a firm that operates in a foreign market. Explain domestication; and identify four specific operational restrictions that could be placed on the firm as a result of domestication. 

Domestication' can be a potential political risk for a firm that operates in a foreign market.

Explain domestication

• Domestication is process to shift the organizations charter to a different state which thereby alters its charter

identify four specific operational restrictions that could be placed on the firm as a result of domestication. 

• Increase in Minimum wage rate
• Business disruptions due to war, riots, etc
• Restrictions on repatriation of funds
• Compulsory buying from local vendors