FDI Albania Dissertation Example | Topics and Well Written Essays - 5500 words

FDI Albania - Dissertation Example The goal of this study is to identify the external opportunities, threats, trends and strategic uncertainties that may be present in Albania, the country chosen for investment. Albania is a country that has recently joined the open economy system. It is encouraging foreign investments thru different government policy measures. However, before foreign investments get in place, there is a need to make an environment analysis on whether or not the country is an appropriate place for investment. Thru available methods of analysis, development of performance is provided as background information, the economic growth of Albania is reviewed, weaknesses of the country system are discovered, and threats for the operations of an investor are found. Conclusion provides benchmark information that could be used by the government in making the country feasible for foreign investment. The overall assessment is explained as a business cycle experienced by the Albanian government. A business cycle is perceived to be a general experience present in all economies, but its length and depth differs in each country experience. Albania is lucky to have a short lived period of recession as it shows signs of recovery already although it is still far into getting back to its former shape. Environment analysis of Albania Introduction Globalization has led to the interests of foreign investors in investing to emerging economies and to the developing countries. Logically, these foreign investors conduct an environment analysis to find out the most efficient economy among various options available. Among the most favoured places for investment are the big emerging markets; i.e. Brazil, China, Egypt, Indonesia, Mexico, Philippines, Poland, Russia, South Africa, South Korea and Turkey. Albania, which is the subject of this analysis, is unfortunately not included among the lists classified by analysts of FSTSE, Dow Jones, and The Economists. Purpose of this research The motivation in conductin g this research is to find out whether the economic environment of Albania provides an impetus of interest to foreign investors. Findings will be relevant to policy makers in order to adapt measures that will encourage foreign investors to become players in various investments opened by the government. In this context a country report analysis will be provided to analyze whether the political and economic trends in Albania will have an effect in the short to medium term prospects of investments of foreign companies. The report will constitute the issues shaping Albania, the political scene, economic policy, domestic economy, sector trends, foreign trade and payments. Background – the development performance of Albania Albania is a South Eastern European Country situated on the Adriatic and Ionian Coast with a population of 3.2 million ( CIA Factbook, 2011) After World War II Albania became a Stalinist state under Enver Hoxha, and remained staunchly isolationist until its tran sition to democracy after 1990. The 1992 elections ended 47 years of communist rule, but the latter half of the decade saw a quick turnover of presidents and prime ministers. Many Albanians left the country in search of work; the money they