Politics and the risk of doing business abroad

An interesting news item in the LA Times talks about how some US oil companies like Chevron and ExxonMobil will be affected by Venezuelan President Hugo Chavez, and his quest to recover “sovereignty” over Venezuelan oil.

This doesn’t mean the oil companies will stop doing business in Venenzueala:

Energy economist Williams summed up the situation for Chevron and others. “He’s taken a majority of the ownership, the taxes are higher, the royalties are higher, and he hasn’t given them any money. Now they have to decide whether they want to stay and play.”

If there is still money to be made, he added, some companies may well opt to “keep their mouth shut and stay.”

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