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Change of law risk is also a business risk. You can see this most clearly in situations like companies constructing tax avoidance schemes. Everyone involved kno
by pmyteh 5y ago
Change of law risk is also a business risk. You can see this most clearly in situations like companies constructing tax avoidance schemes. Everyone involved knows that the law may well be changed to close the loophole being used. So the question is whether you can make a profit off the scheme before then. Ditto if you're a brewer and the state changes the alcohol laws in some unhelpful way. The situation here isn't that different.
- edanm 5y agoI agree completely. Businesses need to "price in" these possibilities. But, I was answering the conclusion of parent's post: > So they should not expect bailouts from the Kosovan public now. Bailouts might make sense if the government broke an implicit or explicit promise to the company about what kind of business can be done.