The government in Chile recently informed Mario's company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting the following year, 50 percent of the board of directors of the Chilean operation of the company must be Chileans. What political risk action is Mario's company facing in Chile?

Question

Ibrahim Saunders

Social Studies

4 May, 17:18

The government in Chile recently informed Mario's company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting the following year, 50 percent of the board of directors of the Chilean operation of the company must be Chileans. What political risk action is Mario's company facing in Chile?

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Answers (1)

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Jones · Answer 1

Domestication

Explanation:

Mario's company is facing a risk called Domestication. Domestication is a political takeover process where a country's government, through a series of decrees, laws or other political measures gradually changes foreign company ownership to national control. In this case. In this case, Chile's government is gradually taking over Mario's ownership, which is a foreign investment, to national control by the people of Chile.