Evaluating Country Attractiveness

Managers in international businesses will need to evaluate the attractiveness of a country as a market or location for a facility or investment. Knowing how to think about events and situations will help the manager make that evaluation.

Countries with democratic regimes, market$-$based economic policies, and strong protection of property rights, are more likely to attain high and sustained economic growth rates and are thus a more attractive location for international business. The benefits, costs, and risks are associated with the political, economic, and legal systems of the country. The overall attractiveness of a country depends on balancing the benefits, costs, and risks.

Select the most appropriate category of evaluations a manager must make when examining a country's attractiveness for the descriptions below.

The laws on business practices are evolving, but you see potential problems in ensuring contract disputes are resolved fairly.

The current leader of the country has been in power for decades, but his health is failing. Social unrest may affect the leadership transition, and there are several opposition groups.

You see an opportunity to establish a strong market presence before your competitors, and you will be able to set product standards. $)$

Political entities in the government expect to receive what may be considered bribes in order to be able to get the necessary business licenses and permits.

$($Click to select$)$

Distribution systems are not well developed, and you may have to create your own. While this could create a competitive advantage, it is expensive to set up$.$

$($Click to select$),$:

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