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in managing political risk, you told me that if i control the distribution of the oil (pipes and shipping etc) and the foreign government takes over the oil refinery, the government will have difficulties selling the oil just by taking over the refinery.
However, what if the government takes over the oil refinery and the distribution of the oil ( pipes and the shipping etc) ????
then the company can’t manage political risk isn’t ? since the government has both authority in distributing oil(through pipes and shipping) and oil refinery.
You said this in an earlier post, and I answered you!
No-one is saying that they can guarantee that the risk is removed. However because taking over the distribution network etc. would be harder for the government to manage, it would reduce the risk of the refinery being taken over.
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