Foreign Direct Investments in Bulgaria Assignment

Foreign Direct Investments in Bulgaria - Assignment ExampleThis paper looks at these problems utilize a strategic analysis framework and proposes a few key solutions that will help the country find clear answers.The investment funds clime is a countrys ability to attract or encourage contrasted individuals or corporations to invest or bring in funds that will start or stand up an ongoing business (Kotler et al., 1997, p. 189).Foreign investors pay attention to at least iv attributes of a countrys investment climate its comparative and competitive advantages, its domestic economical and political stability, property rights protection, and foreign trade zones.Foreign investors will put in money in another country only if the investment climate is attractive, which means that there is a good chance the funds invested will make money and profits, that the government will not give the business unmanageable problems, and that the country can also benefit from the investment.Examples of FDI be funds to construct public roads and schools, to modernize the countrys telecommunications facilities, or to develop energy generation plants. Countries want Bulgaria that want to develop its economy are doing its best to attract foreign businessmen so they will invest.Investors will know the four attributes of a countrys investment climate by using a strategic analysis approach, where the country is treated same(p) a bus... strategic analysis approach, where the country is treated like a business that wants to attract capital from foreign investors for business projects that will result in long-term profits for the investors and give benefits to the country and its people.There are many strategic analysis frameworks to choose from Porters Five Forces (1980) or Ansoffs Strategy Matrix (1965) applied to firms, or Porters Diamond (1990) and Yips Drivers (2003) used to analyse countries and firms strategically.A mere(a) framework that applies to both firms and countries c ombines both the SWOT (Andrews, 1971/1987 Ansoff, 1965 Chandler, 1962) and PESTEL (Steiner, 1979 Andrews, 1987) techniques of strategic analysis into what is called the SWOT-PESTEL approach. We will use this to analyse Bulgarias investment climate.Method of SWOT-PESTEL AnalysisSWOT analysis is a review of the countrys internal (Strengths and Weaknesses) and external (Opportunities and Threats) environment. PESTEL analysis studies the effects on the countrys foreign direct investment environment of six general factors Political, Economic, Social, Technological, Environmental, and Legal.The strategic analysis combines four SWOT and six PESTEL factors. We will do this by conducting a SWOT analysis of each of the six PESTEL factors based on literature available from our look for and summarise our findings on table format, before we conclude with a list of four investment climate attributes as they apply to Bulgaria.This will help foreign investors make decisions, allowing them to compa re Bulgarias investment climate with that of other countries.We begin the paper with a brief write-up on Bulgaria, highlighting important issues the country is currently facing. Then, we cash in ones chips with our analysis by