Effects of YPF Nationalization Research Paper Example | Topics and Well Written Essays - 1000 words

Effects of YPF nationalisation - Research Paper ExampleThe communization has also severed genus genus Argentinas social traffic with other countries that threatened to impose stringent political and economic sanctions on Argentina. Nationally, the social effects of the nationalization include an increase in the amount of taxes paid by Argentinians (Cassidy, 2012). The goernment is also restricting gold flight, which is growing at an alarming rate as more and more Argentines lose faith in the acress economic prospects. As a consequence, Argentines continue to encounter immense restrictions, particularly with deliberate to making investments. The Argentine President infuriated Argentinas allies such as Spain nevertheless also won the favor of a massive portion of Argentines who consider the expropriation of Repsol as serving Argentinas interests. The Argentine governments decision to wrench control from Repsol continues to instigate fear amongst Argentines, as well as other peo ple in the region. This is largely because YPF is a prominent company, which contributes substantially to the prudence of South America. Therefore, other South American countries are bound to be adversely affected by Argentinas move to nationalize YPF. As a consequence, these nations are likely to consider the Argentina government as irresponsible with the countrys and regions wellbeing. ... In essence, the nationalization of YPF leave behind cause detrimental effects to the governments capacity to provide its citizens with proper social services. On the other hand, Argentina is likely to suffer fuel scarceness as a consequence of the nationalization. This is because the country does not have the capacity to explore its vast oil and gas resources. Oil and gas scarcity will, in turn, result in increased living costs on the people of Argentina. Effects of the nationalisation on society in Argentina The nationalization of YPF serves to move Argentina back to the status of a net ene rgy exporter while at the same time having immense sovereign power over the countrys energy industry, as well as natural resources. This perception towards the effects of YPFs nationalization on Argentinas social environment is quite distinct from the former signals, which indicated that the Argentine government was moving towards a wholesome nationalization of the countrys oil and gas resources. As a consequent, the nation recognized that it its domestic investor pool was quite inadequate, and the country seriously required strange expertise, as well as foreign investments to enable it tap its energy resources (Romero, 2012). This was especially the case regarding Vaca Muertas immense shale oil and gas reserves. In essence, all these moves signify Argentinas growing apprehension for its sovereignty both socially and economically as the country is no longer afraid to require a clash with other nations in its fight for its rights. Reception YPFs nationalization was warmly welcomed by Argentines who thought that the government could have expropriated 100%, not just a portion of it. Most Argentines consider that the