Though not explicitly rooted in the ICAPM, scholars studying global capital flows have been concerned with the prospect that investors will not realize a return on their investment due not to the poor performance of the investment itself but rather because of expropriation risk. These studies are rooted in the commitment problem: investors in country j make decision to invest in country i1 at time t and hope to realize a return at time t+1. Once the investment has been made, politicians in country i1 have an incentive to expropriate the investment either directly through.
