Since the government of Nigeria is strapped for cash,it has decided to tax all foreign investments (such as oil production equipment)by up to forty percent of appraised value.The Nigerian government has found that this is the handiest and quickest means of finding operating funds.This form of economic risk is associated with which of the following?

Question

Quizplus · Accepted Answer

Tax controls refer to government policies that use taxation to control economic activity, which is exactly what Nigeria is doing by imposing taxes on foreign investments. The other options listed (exchange controls, local-content laws, import restrictions, and price controls) do not directly relate to this specific situation described in the question.

Since the Government of Nigeria Is Strapped for Cash,it Has