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World's most hazardous nations to do business in

Last updated on: December 24, 2010 19:19 IST

The world's riskiest nations to do business in

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The Global Risks Index by Maplecroft in 2010 measured a combination of strategic risks that are having an increasing impact on the global operations, supply chains and distribution networks of corporations.

This study helped the consultancy firm to arrive at a list of the world's riskiest nations to do business in.

Some of the major risks that global corporations face are macroeconomic risks, poverty, rule of law, resource security, vulnerability to climate change, terrorism, conflict, natural disasters, human rights violations, and risks from pandemics and infectious diseases.

So click NEXT to check out which are the riskiest nations in the world to do business in...  


Photographs: Reuters
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The world's riskiest nations to do business in

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Rank 1: Somalia

Somalia is considered the riskiest country to do business in.

The major reasons for the fear that global business have for these nations is weak governance, internal conflicts, and regional and political instability.

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The world's riskiest nations to do business in

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Rank 2: Democratic Republic of Congo

Congo is the second riskiest country to do business in.

Each of these countries poses specific challenges to business that require monitoring.

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The world's riskiest nations to do business in

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Rank 3: Zimbabwe 

Zimbabwe is the third riskiest country to do business in.

A wide range of recognised international sources are used to compile the data for the 26 indices on which the Global Risks Index (GRI) is based.

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Rank 4: Sudan

Sudan is the fourth riskiest country to do business in.

The Global Risks Index forms the centrepiece of Global Risks Atlas 2010, which includes 34 risk indices in all, accompanied by interactive maps for the easy identification of risk worldwide.

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Rank 5: Myanmar 

Myanmar is the fifth riskiest country to do business in.

The countries rated least at risk in the GRI are predominantly Scandinavian with Norway (175), Iceland (174), Finland (173), Sweden (171) and Denmark (169) setting the standard for the rest of Europe.

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Rank 6: Afghanistan 

Afghanistan is the sixth riskiest country to do business in, says the Maplecroft study.

China (79) and Brazil (96) are considered medium risk. They perform better than other emerging nations due to the strength of their economies, but still are associated with considerable risks; China in the areas of human rights, rule of law and water security, and Brazil for vulnerability to pandemics and CO2 emissions.

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Rank 7: Burundi

Burundi is the seventh riskiest country to do business in. 

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Rank 8: Liberia

Liberia is the eight riskiest nation for global corporations to set up shop in. 

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Rank 9: Chad 

Chad ranks 9th in terms of risk of doing business for international business houses, says the Maplecroft study.

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Rank 10: Nigeria

Nigeria is the tenth most hazardous country in the world to do business in, based on a new ranking from risk advisory firm Maplecroft. 

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Rank 11: Iraq

Iraq is the 11th riskiest nation to do business in, as ranked by Maplecroft.

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Rank 12: Pakistan

India's neighbour Pakistan is considered the 12th riskiest nation in the world to do business in.

Lack of governance, internal conflicts, terrorism, and political instability are the main reasons why Pakistan is not on the radar of many global businesses.

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Rank 42: India

India ranks 42nd in the list of riskiest nations to do business in.

However, India's rating, for instance, reflects a poor record in terms of speeding up reforms process, labour laws, increased risk of terrorism, high vulnerability to climate change impacts, a low capacity to contain disease, plus high levels of poverty, water and food insecurity.


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