Hostile Foreign Governments

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Foreign governments are hostile to international companies that make lots of profits off the resources of those foreign territories without investing much into the country. In such cases, like in the energy segment, those foreign countries feel political pressure to tax foreign comes in order to gain money and fill their budgets. … "Hostile Foreign Governments" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statement will lead to a decrease in profits. "Hostile Foreign Governments" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.