Question

Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia?

a. The high levels of economic development in these countries
b. The signs of instability and growing unrest along with totalitarian tendencies seen in these countries
c. A strong commitment to market-bases economic systems seen in these countries
d. Low returns involned in doin business in these countries

Answer 1

Answer:

b. The signs of instability and growing unrest along with totalitarian tendencies seen in these countries

Explanation:

When a company invests money in a foreign country, they analize the economy of the country and the political environment, among other factor to be sure that there is stability in the country, the government and the laws so they can feel that their investment is safe. When these conditions are not guaranteed, businesses are less willing to make an investment. According to this, the conditions that are most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia is the signs of instability and growing unrest along with totalitarian tendencies seen in these countries as they feel that there can be changes at any moment that can make them lose money.