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WAEC Commerce 1993 Question 27

Question 27

Government and Business

One of the main problems of nationalization is that

  1. A.nationals may not welcome the change of ownership
  2. B.foreigners are not able to control the economy
  3. C.repatriation of profit is increased
  4. D.there may be capital flight
  5. E.there will be adverse balance of payment
Show the answer and explanation

Answer: D (there may be capital flight)

Explanation

Fear of takeover makes investors move their capital out of the country (capital flight).