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The Commonwealth of Independent States Economies by Erika Cornelius Smith, Marcus Goncalves

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CHAPTER 5

Political Risk in CIS Region

Overview

The decision of whether or not to invest in foreign markets should include an assessment of the political environment. Political discontinuities create a level of uncertainty for companies and individuals because they can lead to significant shifts in policies, regulations, governmental administration, and other potential risk factors that are not typically associated with advanced economies. Political instability can lead to restrictions on products, technology, and labor and even lead to practices of discrimination against foreign firms. This chapter will survey the impact of a series of political and economic risk assessments that include factors such as economic growth, labor unrest, social ...

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