Choose two countries (other than the U.S.) within the same region of the world. Assess the...

Choose two countries (other than the U.S.) within the same region of the world. Assess the political risks, economic risks, and legal risks of each country. If you had to invest a large sum of money into one of these two countries, which one would it be? Why?

Expert Solution

Nowadays, when we talk about foreign investment in any country there are being numbers of factors to be consider before any huge investment, which starts from ruling government and as well as opposition political parties influence and many other aspects.

Let us start with considering two country which lies in same Asia continent and also being neighbors for years, We would discuss for INDIA and PAKISTAN, both the countries were earlier a one country, before there partition in the year 1947. Both have form there own constitution and started with a new era of growth.

India, which is being now the most emerging country in worldwide, not only for his culture but also with a new market for all rest of the world with holding population of 1.50 billion. When we access their political scenario its largest democratic country, Were as government are investors friendly with very little labor union problems, with having infrastructure facility for logistics and itself country is a big consumer. India is having highest middle age people in worldwide and also having handsome purchasing power. India is having systematic legal processes which are friendly and protective.

Pakistan, is country with having a high influence of Military in government decision which make ones to think before investing, here government is not so much powerful and friendly, there are numerous of problem with people due to high unemployment ratios, The government is also in trouble with influence of military and terrorist, purchasing power of people are very weak and also legal process is not under control.

I conclude, if someone have to make huge investment then he should invest in INDIA rather than PAKISTAN.

Rahul Sunny answered 2 years ago

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