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I have heard that a working legal system is one way for a country to attract long term investment. There is less risk that some politician's friend ends up clai

I have heard that a working legal system is one way for a country to attract long term investment. There is less risk that some politician's friend ends up claiming your factory grounds. There are ways yo try to "hack it" like subsidies or having personal relations with someone high up but I don't know how cost effective and long term they really are. So if people want long term improvement, they should vote for a strong legal system instead of "I personally brought this factory here".

jariel 7y ago
It's the 'legal system' - and everything else. German/French car companies, with long and historic ties on many levels to say, Poland, can fathom the risk of going there, especially with a long term view. Volskwagen can plan decades ahead in some facets. It takes 'a whole team' i.e. government (local, Fed, EU), probably financing/banking on both sides, political buy-in etc.. But for a new US company to go to Czech ... is asking for trouble. The difference between E/W Europe is definitely centred around competitive advantage and long-established industries - but I'd argue more than anything it's 'good governance' at every level, private and public. And it's the same all over the 'developing' world.