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Nationalization In Venezuela

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"One thing a foreign company opening up operations in Venezuela needs to worry about is the potential of being taken over by the government if they feel the business is of strategic interest. One only has to look to Argentina to see what can happen."

How would you respond to the above comment?

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This detailed solution discusses the potential of a business in Venezuela being nationalized, or taken over by the government. It includes examples and APA references.

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Nationalization is the process of a government taking over an industry or company. This can occur with or without remuneration. This is a serious concern for foreign companies operating in socialist countries or countries operating from a different political standpoint. Upon becoming president of Argentina in 2003, Nestor Kirchner renationalized the country's postal service, took over the "railways, a radio-spectrum operator, a shipyard and a water company" (Stuttaford, 2012). More recently, Cristina Fernandez de Kirchner, now president of Argentine, nationalized YPF, the oil company belong to Spain's Repsol. In addition, she has expropriated the country's private pension funds and its' main airline, Aerolineas Argentinas. The government justifies these nationalizations as a way to provide ...

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