Essay: Explanation of the Market Evaluations

Essay: Explanation of the Market Evaluations
13/04/2011 Comments Off on Essay: Explanation of the Market Evaluations Academic Papers on Business Studies,Sample Academic Papers admin

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Political and Legal Factors

The silent revolution, such as the Velvet Revolution and Velvet Divorce, in the Czech Republic, has played a major part in maintaining the political stability in the country. Over the years it has rigorously encouraged privatization of business and has revamped its policies to facilitate this. It has also been a major point of investment for foreign entrepreneurs, which can be evaluated as the presence of much less risky environment in terms of expropriation (Central Intelligence Agency 2009). The Legal and Law making system in the Czech Republic is strong and much of the legal proceedings are free from the influence of the government (Giese & Partner, V.O.S. 2007).The Czech Republic also has a number of bilateral agreements with other countries, particularly with European countries, where much of its products are exported.

Government officials and workers encourage foreign investment and consider it as a major source for the development of their country (Giese & Partner, V.O.S. 2007). The country also provides equal civil rights as well as medical treatment rights as well to foreigners as well. However, all expatriates working in the Czech Republic require a work permit to work in the country, except for people from European Economic Area countries ( 2009).

Russia, on the other hand, has been politically stable since the Putin regime (RVUR: The Voice of Russia 2007). However, in the recent years has shown a discouraging attitude toward the private firms, especially in oil and gas development sector. The nationalization of Sakhalin Island from Shell is a good example of Russia’s nationalization intents (Lustgarten 2007). This, of course, increases the expropriation risk for the foreign investors. There have been instances where the legal system in Russia has been demonstrated as being influenced by the government or wealthy individuals, while also evaluating the government controls in a bad light.  Though Russia has a number of Multilateral and Bilateral Agreements with regards to its export, the natural resource present in Russia rather than government attitude encourage the investment from foreign countries (European Commission 2009). It also limits the rights of expatriates living in Russia.

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