The Argentine government's April 2012 nationalization of a majority stake in YPF, the country's largest oil producer, is an example of

Respuesta :

The policy of the Argentine government in nationalizing YPF was an example of Political Risk.

What is political risk?

  • It is one of the risks faced by businesses in a country.
  • Refers to any risk related to the governing of the country.

When a government nationalizes a company, they often take over ownership at reduced rates which is not beneficial to shareholders. This is a risk that companies take in less developed countries.

In conclusion, this is political risk.

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