A  couple of you have already used the term 'nationalization', but it is an issue of such importance as to warrant us zeroing in on it as a group to shine a light on the risk.

Nationalization is a major risk that companies (and investors with international holdings, either direct or via share ownership) need to be mindful is the existential event of nationalization.  

Class, can someone explain what nationalization risk is, and in some sense how it represents the ultimate risk that a foreign investor faces?

Answer rating: 100% (QA)

Answer Nationalization risk refers to the potential for a foreign government to seize control of privately owned assets or industries within its juris... View the full answer