Description
You are the CEO of a company that has to choose between making a $100 million investment in Russia or Poland. 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 justify your answer specifically based on your research about these two countries.
Explanation & Answer
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Running head: POLAND AND RUSSIA RISK ANALYSIS
Risk Analysis for Poland and Russia
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Institution
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POLAND AND RUSSIA RISK ANALYSIS
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Understanding the risks to business is vital for startups. Different nations present varying
degrees of business risks. The political and economic factors of a country, among other elements
such as legal, social, and environmental, all affect businesses operating in those countries. For
new investors, examining the business environment in various nations and comparing them can
help them to decide on where to invest and where not to invest (Khattab, Aldehayyat, & Stein,
2010). Poland and Russia are both countries where one could invest, but it is essential to
understand the risks to new businesses in both nations. The paper below discusses the threats to
investing $100 million in investment in Polland and Russia. The discussion weighs both options
and concludes on the country; an investor is likely to choose based on risk considerations.
Polland and Russia have established governments. Russia was founded in the 12th century
as part of the historical Soviet Union. Later in 1991, the u...
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