What indicators would you look for in assessing the political riskiness of an investment in Eastern...

What indicators would you look for in assessing the political riskiness of an investment in Eastern Europe?

Expert Solution

While conducting the international business in emerging opportunities in markets for multinational corporations, the upside for such regions in Eastern Europe is usually accompanied with the turmoil and challenges. The struggles for the conducting of the business in a location which is unfamiliar location are often lumped together with the political risk - the threat that social, political or economic factors in a foreign nation may impact the profitability and feasibility of global operations of an organization. Therefore it is important to assess the political riskiness of an investment in these regions. It can be done with the following indicators:

-- Does free prices continue the old system of administered prices that are based mainly on the subsidies from state?

-- Does Eastern Europeans sell and dismantle the state-owned monopolies quickly?

-- Does these regions establish all the requisites of capitalism such as the tax regimes, capital markets, and contract law to cope with the new-found enthusiasm in these free markets?

-- Will be the governments be interested in the temptation to fine-tune their economies for decreasing the costs of making the transition towards the market economy?

-- Would the Eastern Europeans will be keen to see successful businessmen to be more successful and rich?

Rahul Sunny answered 8 months ago

In your opinion, what would make a company a good financial investment? What would you look...

In your opinion, what would make a company a good financial investment? What would you look for? In order to answer this question don't just limit yourself to the three ratios for the paper but what are key indicators of a strong company?

what would a morning and evening gratitude practice look like to you? and how would it...

what would a morning and evening gratitude practice look like to you? and how would it improve your sleep hygiene, stress management, and overall outlook on life?

As an investor, what would you look for in an annual report? Why are the notes...

As an investor, what would you look for in an annual report? Why are the notes to the financial statements so important?

Will you buy political risk insurance? Look at the OPIC site and explore who they are...

Will you buy political risk insurance? Look at the OPIC site and explore who they are and what services do they offer. OPIC. (n.d.). What we offer (Links to an external site.)Links to an external site. [Website].

look up the structures for mannose and galactose. what would you expect to see if you...

look up the structures for mannose and galactose. what would you expect to see if you performed a Benedict's or Fehling's test on each monosaccharides? what would your observations tell you about these two sugars?

Suppose you want to start a business. What are some of the costs you would look...

Suppose you want to start a business. What are some of the costs you would look at? For Eg you may have to look at - Labor costs: salaries, stipends, fringe benefits Operating costs: rent, supplies and materials, minor equipment and furniture, contracted services, postage, telephone, staff training, local travel Indirect costs: depreciation - capital equipment, custodial services Societal costs: positive or negative impact on society By wed: Break the costs and market structure by a) Economic and Accounting costs...

As an investor, what evidence would you look for to detect an economic bubble forming? What...

As an investor, what evidence would you look for to detect an economic bubble forming? What steps might you take to lower your risk of losing substantial investment to an economic bubble bursting?

Given what you know about the riskiness of various bonds (and the yields on them), which...

Given what you know about the riskiness of various bonds (and the yields on them), which bond is likely to have the highest yield (assume that all have the same maturity term, face value etc.)? A. A “junk” bond issued by a financially shaky company. B. A bond issued by the city of Charlotte. C. A bond issued by the U.S. Treasury. D. A bond issued by General Electric Corporation. 2. Ceteris paribus, the primary advantage of a stock or...

You would expect a bond of the U.S. government and a bond of an Eastern European...

You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds’ (Credit risk/ tax treatment/ term ). You would expect a bond that repays the principal in year 2040 to pay (the same/ higher/ lower ) interest rate as compared to a bond that repays the principal in year 2020. You would expect a bond from a software company you run in your...

If you were a political leader, what one thing would you change in the healthcare system...

If you were a political leader, what one thing would you change in the healthcare system to optimize access of health services to the maximum number of Americans without further escalating costs or diluting quality or timeliness? Provide detailed rationale.

Question