Cage Framework

Cultural Distance

Administrative Distance

Geographic Distance


Economic Distance

Albania
Wide spread Italian or Greek language skills. 1. Free trade agreements with the rest of the Balkan countries 2. Outside the EU and Eurozone 3. Albania 1 Euro scheme 4. Tax and customs exemptions 5. Subsidised lease of state premises

1. Small domestic market 2. Bad quality of inland road connections 3. Favours sea transport as a mode of moving goods to the destination market 4. Proximity to Italy and Greece, as well as the Balkans 5. Located within the Mediterranean region

1. Fastest growing country in South Eastern Europe in the last 10 year period 2. Low inflation rate 3.90% of exports designated to the EU 4. Low costs of utilities 5. Young labour force 6. Simplification of procedure 7. Ongoing privatization programme 8. Available pool of a low cost labour force 9. Shadow economy of substantial size 10. Under developed infrastructure

Cultural Distance

Administrative Distance

Geographic Distance

Economic Distance

Bosnia and Herzegovina
1. Ethnic tensions persist 1. The country is divided into cantons in which the legal environment is not homogenous. 2. Favourable legislative environment for investors. 3. Varying legal systems between cantons 4. Established foreign investors support fund 5. Tax exemptions 6. Free trade zones 7. Political risk still exists 8. Currency exchange risk 1. Landlocked and mountainous 2. Forestry–50% of the land is forested 3. Under developed transport infrastructure 1. Agriculture ,especially the production of fruits and vegetable 2. Currency pegged to the Euro 3. Accession talks with the EU started 4. Ongoing privatization programme 5. 10%corporateincometax 6. Available pool of working force

Cultural Distance

Administrative Distance

Geographic Distance

Economic Distance

Bulgaria
1. Member of the EU 2. Stable political environment 3. Favourable legal environment for investor 4. Stable currency ,...