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Financing Trade With Burma - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Financing Trade with Burma Name of Author Author’s Affiliation Author Note Author note with more information about affiliation, research grants, conflict of interest and how to contact Financing Trade with Burma Purpose: This paper attempts to analyze whether Burma is a favorable location for US companies to make investment…
Political instability is a great challenge for investors in Burma. The investors also face risks from consumer boycotts. Therefore, Burma is not a favorable investment option for American companies. It becomes apparent that there is hesitation among investors to spend money on projects in Burma, which is the reason why there is a dearth of foreign investment in the country. For making investment in Burma, the companies should get approval from Burmese authorities. The foreign companies can do business only through joint venture with Burmese collaboration. Burma lacks strong economic policies to bring foreign investment. Therefore, it is really a threat for US firms to make investment in Burma. Moreover, the political instability and conflicts in the country are another problem. The country’s governance lies with its military and there no uniform or precise rules in the country to protect the investors. The poor infrastructure facilities are also a major handicap for companies investing the country. Thus, any person who intends to invest there will have to develop the basic facilities. This will entail additional costs to the investor. The fiscal policies in the country also do not favor investment there. Besides, Burmese government imposes huge taxes on foreign investors. ...
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