And It'll Reduce Honduras's Trade Deficit

by Don Boudreaux on January 14, 2007

I seriously doubt that the Honduras government’s "temporary" confiscation of oil-storage terminals owned by private oil companies will lead to long-run reductions in the price of fuel oil for ordinary Hondurans. But, hey, there’s a silver lining around this confiscation: by making investment in Honduras less attractive, it will lower Honduras’s trade deficit!