CHAPTER 6

Political Risk in Eastern Europe

The transition of power from one regime to the next has traditionally been less than seamless. And all too often, this can lead to civil unrest in the streets to go along with the political conflict in the cabinet.

—Jared Wade

The decision of whether or not to invest in emerging 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 ...

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