What term describes government actions that remove incentives for investment?

The term that describes government actions that remove incentives for investment is expropriation. This refers to the process where a government takes privately owned property or assets for public use, often without fair compensation. When investors perceive the risk of expropriation, they may be discouraged from investing, fearing that they will not receive a fair return on their investment or that their property will be taken without appropriate compensation. This act undermines confidence in the stability and security of investment environments, which can significantly affect economic activity and growth.

In contrast, tax incentives are designed to encourage investment by providing financial benefits, while market regulations often aim to ensure fair competition and consumer protection, resulting in investment stability. Subsidization involves government support to encourage certain activities or sectors, aimed at fostering investment rather than discouraging it. Therefore, expropriation clearly stands out as the main term associated with discouraging investment through government action.