Question
In 2019, to stabilise the peso and prevent capital flight, the Government of Argentina announced an emergency re-imposition of currency controls which limited repatriation and
In 2019, to stabilise the peso and prevent capital flight, the Government of Argentina announced an emergency re-imposition of currency controls which limited repatriation and convertibility. Which of the following precautions or measures would protect a foreign investor when dealing with a country like Argentina, not having freely convertible (hard) currency and having low foreign reserves?
a. Argentina's actions are illegal and can be the subject of a suit by the injured investors in the International Court of Justice.
b. Buy risk insurance for repatriation and convertibility through the World Bank (MIGA), a home country government agency or a private insurer.
c. Use of hedging techniques.
d. Use of countertrade.
e. An investment protection treaty between Argentina and the foreign investor's home government that provides legal or diplomatic remedies, including the right of arbitration.
f. (b), (d) and (e ) only
g. All of the above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started