Doing Business in Russia & Czech Republic Essay

When assessing the market for investment it is also important to be able to identify what risks are presented by these markets. As this project requires a $100 million investment it is crucial here to be able to have a steady economic and political environment to carry out the operations of the business. As of 2004, the Russian government has taken a strong control of the legislation in the region. The government has either help up or has cancelled several big American projects. The new legislation also tends to weaken the rights of the shareholders. Moreover Russia has not been cooperating with the United State in terms of energy agreements. This makes the country and its legal and political associations hostile towards business which is derived form the United States. This along with the political uncertainty in the region makes the investment climate in Russia very unpredictable and unfavorable. However despite this investment in the economy has been growing. Most of this has come from the FMCG and consumer goods sector. The advantage of conducting business and investing in this region would be benefiting from the high standards of technical education and training. However, by investing in this country the business will have to face and combat corruption at every level. Conducting business in the Czech Republic offers problems in the short term related to compatibility issues, registration of the business as well as adaptation to the culture and environment in the region. However the benefit of investing in this region would be benefiting from the tolerance and cooperation characteristics of the work force which enable the country to be economically successful in the long run. The unemployment rate n the country has decreased and the country is moving towards advancement presenting as a favorable market for investing in a business or operations in this region. According to the analysis of the two countries that has been conducted, it would be more feasible and economically viable to invest in the Czech Republic as compared to Russia.