University of Piraeus. International Strategic Management Association
Abstract
The main aim of this paper is to analyse all possible characteristics related to
the country risk factor for the state of Romania. The country risk factor is a measure
of a risk related to economic, political, physical and other unforeseen events able to
affect the stability of the financial sector in a certain country with immediate results
in the profitability index of the multinational companies operated in the country
especially banks. Nowadays, in the context of a very high rhythm of economic
globalization and of international investor’s expansion in multinational companies,
the country risk factor is very important.
The paper tries to assess the Romanian country risk factor especially after the year
2007, when Romania has became a member of the European Union. Some
comparisons between its country risk factor and that of the other new member states
will be also made in an attempt to find out the relative position of Romania with
respect to the other nations joined the European Union recently. A valid analysis of
the business environment will be also presented as it is consider as a key element for
the enterprises in order to be aware of the direction they are heading and contributes
to improve the favorable factors they should develop to come out with the competitive
advantage. The SWOT analysis will be used to emphasize the strengths, the
weaknesses, the opportunities and the drawbacks of the Romanian business environment and their mode to influence the country risk factor of the state of
Romania.peer-reviewe