Country risk and political risk

Estonia has grown rapidly, especially after independence. The country has not experienced any political volatility since 1991. Therefore, there has been political stability. This has created a favorable business environment for carrying out business. Further, it can be pointed out that Estonia handled financial crisis effectively. Adverse measures were put in place to restore the economy and mitigate the impact of the crisis. Specifically, the government used stringent fiscal policies to restore the economy. The country has a number of economic strengths. Examples are educated workforce, lower cost of labor as compared to other members of the EU, strategic location, and the ability to embrace new technology easily. Further, the country does not have problems that relate to human rights. Besides, the corruption level is low. The threat of terrorism is quite low in the country. However, it is exposed to the risk of unselective attacks just like all countries other across the globe. Therefore, the risk that an investor business will be exposed to by investing in Estonia is quite low.