You are the CEO of a company that has to choose between making a $100 million investment in Russia or the Czech Republic. Both investments promise the same long-run return, so your choice is driven by risk considerations. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?As the CEO of a company needing to determine which country is best to invest, I would look at 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 now, Dmitry Medvedev. The risk of loss due to acts of political violence remains foremost on investors' minds, as does the risk of acts of expropriation or forced renegotiation of contracts by the Russian government. In this regard, Russia remains a land of opportunity that includes substantial potential risk. Relatively, the Czech Republic is more stable, but it may have less potential.
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