Country Risk Analysis – Czech Republic

Texas Instruments is well known for their high grade products in the electronic industry and computer technology. In order to get an valuate against their rivals the orthogonal direct investment is a necessary crumble of their business strategy. They can certainly improve profitability, innovation, cut follow and provide a more effective research and outgrowth base for their products through FDI. If they would have decided to invest $1 billion I would suggest that one of the best choices for them would be to invest money into the Czechoslovakian Republic. It offers the Western European lineament standard for Eastern European prices. The high skilled labor, excellent honours degree production cost and proximity to the westerly market atomic number 18 just a couple of(prenominal) advantages that the Czech Republic has. check to CIA knowledge domain point Book the Czech Republic (previously Czechoslovakia) was influenced by the Soviet Union. later on 1989 the Soviet s upremacy collapsed, and the Velvet Revolution end up the Communist era in the Czechoslovakia. In 1993, Czechoslovakia was binge into the Czech and Slovak Republic and since early 1990?s it has become a profuse integrated country with exceptional degree of currency stability and strong banking system. The FDI has significantly increased after the publicity of the outside(a) Monetary Fund (IMF) and in the first half of 2006 the Czech Republic has cleared almost $3 billion of FDI.

check to Ernst & Young, it was ?the seventh most depictive location for upset investors in the world?(CzechInvest Oct.17,2006). One of t he reasons why the CR tends to attract a lar! ger number of foreign investments is because they are put on a flat corporate income tax of 24%. However, in that location is a certain level of political pretend that the foreign investor should be aware of. The reason is that the current governing body big businessman not turn out to be as permanent as... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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