Financing Trade With Burma Essay Example | Topics and Well Written Essays - 1000 words

Financing Trade With Burma - Essay congressmanPolitical instability is a great challenge for investors in Burma. The investors besides face risks from consumer boycotts. Therefore, Burma is not a estimationable investment option for American companies. It becomes appargonnt that there is hesitation among investors to spend money on projects in Burma, which is the reason why there is a dearth of international investment in the country. For reservation investment in Burma, the companies should get approval from Burmese authorities. The foreign companies can do business only if through joint venture with Burmese collaboration. Burma lacks strong economic policies to bring foreign investment. Therefore, it is really a threat for US trustworthys to make investment in Burma. Moreover, the political instability and conflicts in the country are another problem. The countrys governance lies with its military and there no uniform or hairsplitting rules in the country to protect the inv estors. The poor infrastructure facilities are also a major chit for companies investing the country. Thus, any person who intends to invest there pass on 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. Foreign investment has risen dramatically over the past year, as international companies cooperate with Burmas government to exploit the countrys natural resources (Jared, 2011, para. 1). 2) Since a military government rules Burma, they impose many a(prenominal) restrictions on foreign trade and ab reveal of their policies are arbitrary in nature. Thus, the country is not investment friendly for foreign investors. America has out(p) investing in Burma due to the military actions against the civilians. In Burma, government owns all major industries and they place many restrictions on foreign trade. The country has trade relations with Asian countries and they export agricultural products and import manufacture goods. Burmas trade with United States accounts only 5% of total foreign trade. Even though Burma has liberalized its economy, they unflustered impose many restrictions on foreign trade. The major earnings in the country derive from oil color and natural gas. Therefore, if an investor decides to invest in this country this industry is a better option. If US companies propose to scar business in Burma, they will have to face several challenges there. Any person or firm can start business in the country only as a joint venture, in collaboration with a Burmese entity. Due to political instability the countrys fiscal and fiscal policies are not good. The inflation rates are high, which will have a direct pram on the cost of operating a business. Investors may also face problems form the government as they do not encourage foreign investment. The tax rates on foreign trader s are also quite high. In Burma, however, foreign trade and investment helps perpetuate the rule of a repressive, unelected junta. Full foreign ownership of companies operating in Burma is forbidden and almost all large investment in Burma is carried out through joint ventures with the military regime (Burma Country in Crisis, 2002, para. 1). 3) Every business involves roughly while of risk. It may also have to face uncertainty of earnings or risk of loss because of some unexpected developments in