The External Opportunities, Threats and Strategic Uncertainties that May Be Present in Albania - Research Paper Example

Albania is a country that has recently joined the open economic 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 environmental analysis on whether or not a 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.

The 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 differ 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.

Globalization has led to the interests of foreign investors in investing in emerging economies and to the developing countries. Logically, these foreign investors conduct an environmental 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.

The motivation in conducting this research is to find out whether the economic environment of Albania provides an impetus of interest to foreign investors.