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You are the CEO of a U.S. company that has to choose between making a $100 million investment in Romania or Austria in a subsidiary.

You are the CEO of a U.S. company that has to choose between making a $100 million investment in Romania or Austria in a subsidiary. Both investments promise the same long-run return, so your choice of FDI location is driven by risk considerations. Assess the various risks of doing business in each of these things nations. Which investment would you favor, and why

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