One of the largest political risks that a company can face is nationalization. Nationalization occurs when a company is a private one but changes to become a firm that is under the control and ownership of a government. Foreign companies, when entering international markets, often consider nationalization as a major risk. Even though some nations might compensate the company that has been nationalized a firm might not be compensated at a fair rate and as research shows there are concerns about the transition from a private firm to a nationalized one. One nation that has seen a high level of nationalization is Venezuela. Under the leader of Venezuela, Hugo Chavez, many companies have been nationalized. In fact,  just his week Google News/Associated Press reported that, “President Hugo Chavez’s government has taken control of the country’s third largest bank-Banco de Venezuela” (“Venezuela takes control of Spanish-owned Banco de Venezuela in nationalization”  n.p.).  The country did pay for the bank, the article stating that over $1 billion in US dollars was paid for the nationalization. An initial payment, the article adds, was made last week of $630 million in US dollars. Lastly, this effort makes the state the largest competitor in the banking system of the nation.  While many might believe that being bought by the government can aid a company, giving it capital, there are numerous problems to consider. For example, Patrick J. O’Donoghue reports that workers in nationalized firms in Venezuela have complained that owners are blocking the transition of these firms. This can be negative for the country that seeks to nationalize companies as a smooth transition is needed to ensure continued productivity, efficiencies and effectiveness.  Yet, other risks, in addition to transition challenges, can include a government failing to compensate the owners of the company. Lastly, for Venezuela in particular, many industries appear to be subject to nationalization such as banking and steel, among others lime members of cement and oil industries. References: O’Donoghue, Patrick J. “Former owners of nationalized steel firms in Venezuela blocking transition.”  VHeadline 7 July 2009.  8 July 2009 <http://www.vheadline.com/readnews.asp?id=81577.>. “Venezuela takes control of Spanish-owned Banco de Venezuela in nationalization.” Google News/Associated Press.  5 July 2009. 8 July 2009 <http://www.google.com/hostednews/canadianpress/article/ALeqM5hSmnvq5-sNvTNnLh_ura7K_tXteg>.