Real Estate

Real Estate

Introduction

Entering into a new market requires a lot of homework in order to successfully compete in that market. However, if that market is any foreign country there is a much greater need to analyze different elements in order to develop a better understanding of that market. Since it is difficult to decipher the native notions of any foreign market therefore a much more detailed analysis is required when the capital tends to be involved. In the context of the paper we intend to analyze the possibility of introducing a real estate product in the market of Cameroon (Pascal, 2006). Moreover, the whole idea of Property investing can be explained as the purchase, management, ownership and sale of property in order to gain profit. It is a cash flow dependent, which is capital intensive.

Discussion

Political Risk

It is interpreted as the possibility of a loss or reduction in the size of profits, resulting from government policies. Thus, the political risks associated with possible changes in the course of government, changes in the priorities of its activities. Consideration of political risk is particularly important in countries with unsettled law, the lack of tradition and culture of entrepreneurship. Political risk is inevitably inherent in business activities; you cannot get away from it, can only be correctly assessed and taken into account. The importance of consideration of the effect of political risk on the performance of entrepreneurial firms said that in order to analyze and evaluate political risk established global network of specialized think tanks of both commercial and noncommercial nature.

However, a policy of the government favoring the real estate has been formulated. Growth has been on a slight acceleration in 2011, underpinned by robust private consumption, higher public spending on infrastructure, which have benefited the agricultural, mining and construction, and export growth of non-oil. Since the government has framed the policies which tend to favor the private construction therefore, the real estate products are bound to succeed in the current environment. Moreover, the growth in the year 2011 has also increased the buying powers of the consumers. Paul Biya's re-election to lead the country in October 2011, for a further term of seven years, took place smoothly.

The ruling party should further strengthen its positions in the legislative elections of July 2012 because of the marginalization of the opposition. The social and political risks remain significant (Kevin, Andrew & Ron, 2008). The uncertainties surrounding the succession of President, today aged 78 have not disappeared.

Cultural Risk

This section of the paper intends to explain the Cultural risks associated to a launch of real estate product in the context of the Cameroon. However, the fact needs to be kept in mind that since culture tends to drive the thinking patterns of the individual. Therefore, Hofstede cultural risks need to be inculcated into the whole context in order to paint an effective picture of the whole process. Cultural Risk tends to be defined as the possibility of occurrence of a misinterpretation of reality and the ...