The Venezuelan government is rumored to be planning new restrictions on foreign firms. According to these rumors all foreign companies operating in Venezuela will soon have to have a new board of directors. Venezuelan nationals must comprise 60% of the membership of the new board. If true, such a ruling would significantly increase ____________ risks for foreign firms.

Question

Quizplus · Accepted Answer

The new requirement for foreign companies to have a majority of Venezuelan nationals on their boards of directors would directly affect their ability to operate in Venezuela. This would increase operating risks for foreign firms, as they may face greater scrutiny and potential obstacles in their decision-making processes.

The Venezuelan Government Is Rumored to Be Planning New Restrictions