Nationalization of foreign investments

Other Names:
Risk of nationalization of overseas investments

Nationalization of foreign investments may take several forms: the assets of the nationalized companies may be transferred to the state; or only the share capital may be transferred, leaving the company to continue operations under state controls. The process may be undertaken in an arbitrary manner with little or no compensation of foreign investors, or through compensation in non-convertible currencies. Typically, nationalization is applied to a particular foreign-owned enterprise if domestically-owned enterprises in the same sector do not exist.

Related UN Sustainable Development Goals:
GOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST