Pricing Risk for Opportunistic Investment in Emerging Markets
The Scorecard research shows that basic property rights are strong in Montenegro, North Macedonia and Romania. Albania and the Kyrgyz Republic are still coping with the transition from state-controlled economies, so property rights remain weak. However, in all these countries, the enforcement of property rights remains a risk for investors. All of the examined countries have weak independent judiciary and dispute resolution can cost time and money. As with investment in any country, contracts should include a mandatory arbitration clause to avoid the courts and the ensuing drain on the investment.
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