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Unformatted text preview: build personal wealth does not provide a great incentive for people to invent new products, develop better advertising campaigns, find ways to be more efficient, etc. As a result, command economies typically generate less innovation and are less efficient than market economies. 5. When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in both Russia and the Czech Republic. The political risk in Russia is still high but it is undergoing continual governmental changes under Putin’s leadership, and courting foreign investment. Relatively, the Czech Republic is more stable, but it may have less potential. On the economic front, both countries have inflation and high economic turmoil as unproductive factories are still struggling. From the legal perspective, the Czech Republic is making clear progress, while the situation in Russia is unclear. Thus at this time, the risk in Russia would clearly be higher....
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This note was uploaded on 04/13/2010 for the course BUSINESS 121581 taught by Professor Schils during the Spring '10 term at École Normale Supérieure.
- Spring '10