1. On April 16, 2012, the President of Argentina introduced a bill for the re-nationalization of the country’s largest energy company, YPF. In more concrete terms, Argentina expropriated the shares that a foreign investor (Repsol) held in the company.
Into which of the following (explicit and implicit) barriers for investing in emerging market equity would you classify such an event?
- Withholding taxes
- Lack of transparency
- Information asymmetry
- Foreign ownership limits
- Governance issues
- Lack of familiarity
