Question

For many years, Romania promised all export-oriented foreign investors a five-year tax holiday if they set up a factory in Romania. Recently, this tax holiday was revoked. Now all foreign investors must pay the same taxes as local companies. Romania has just undergone ____.
a. confiscation
b. domestication
c. political risk
d. regulatory change

Answer 1

Answer:

d, regulatory change

Explanation:

Romania underwent a regulatory change as soon as it revoked the tax holiday it initially promised export-oriented investors.

The reasons for doing that is best known to the Romanian government but the important thing here is that when there is a change in regulations or priviledges, it is termed a regulatory change.