Political Instability And The Decision Making Process Of Foreign Direct Investment Essay

1746 WordsNov 17, 20167 Pages
Risky: 1) Political instability: Political factors play a great role in the decision making process of foreign direct investment. A country with high political unrest or instability has more risk and uncertainty, making it less attractive for investment. The fast growing potential economy of Bangladesh has repeatedly faced significant political challenges over the last few years. Relations between the two major parties in Bangladesh are poor and the political system remains confrontational and highly centralized. Political unrest sparked by events including an ongoing war crimes trial and execution of opposition leaders on war crimes charge. Political protests turned into violent for some time in January and February 2015, disrupting production, transportation and various services. The trigger for the unrest was a protest to mark the anniversary on January 5th of 2014’s election, in which Prime Minister Sheikh Hasina 's Awami League won a second consecutive term after a bloody parliamentary election boycotted by the main opposition Bangladesh Nationalist Party (BNP). Nearly 50 people have been killed and more than 10,000 opposition activists arrested. Many local and foreign entrepreneurs have lost their interest to invest in the country due to the political upheaval and uncertain Economists say, a country cannot reach its destination through such condition. They suggest, long term political stability with good governance is crucial to attract more foreign direct

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