What is the term for withdrawing financial investments from a country to oppose its policies?

Prepare for the HSC Apartheid Exam. Use flashcards and questions with hints/explanations. Ace your test today!

The term for withdrawing financial investments from a country to oppose its policies is known as disinvestment. This action is often taken as a form of protest against a government's practices, such as human rights violations or discriminatory policies. Disinvestment can involve pulling funds from companies operating in that country or encouraging investment funds to divest from specific industries or sectors that support the problematic policies.

While both disinvestment and divestment are often used interchangeably, disinvestment specifically refers to the broader strategy of withdrawing investments to send a political message, typically associated with anti-apartheid movements and similar efforts. In protest contexts, this financial maneuver aims to exert economic pressure on the targeted government to effect change.

The other terms listed do have related meanings but focus on different aspects of protest. Sanctioning generally pertains to formal penalties imposed by governments against other nations, while boycotting is a refusal to purchase goods or services from a particular country or company. Understanding these distinctions helps clarify why disinvestment is the most accurate term in this context.

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