Pulling out of a country is an expensive proposition for a multinational firm, but it is sometimes required for the corporate bottom line. If the host country changes laws or even expropriates a subsidiary, it is often time to leave or divest.

Divestiture—pulling out assets or closing down part of a firm—is generally the result of either internal or external pressures. Internal pressures may be an issue with the parent company or unit-specific concerns. External pressures can come from the business or political environments. Multinational firms can also face pressures that are both external and company-specific, such as policy disputes with foreign host governments that push them to divest.

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