XY Corp has a plant in a small country with a friendly, though unstabl

XY Corp has a plant in a small country with a friendly, though unstable government. A new government takes over before XY Corp is able to move any assets out of the country.

The new government chooses to not recognize XY’s ownership and takes control of the company’s assets. This is an example of
A) Arbitrage.
B) Exchange rate risk.
C) Nationalization.
D) Hostile takeover.

ANSWER

C