The currency and translation risks are minimized because Estonia joined the Eurozone. The use of one currency in the Zone reduces the risk of adverse fluctuations of exchange rates.
The analysis above shows that the country had a tremendous economic performance. Besides, the speed at which the country recovered from the global financial crisis shows that a potential investor cannot lose when there is a shock in the economy. Estonia is a vibrant and high income country with a relatively low risk in major aspects of the economy. Besides, it will have a high potential of growth and more development in the future. Therefore, an investor can either invest in the country, through buying portfolio investment or foreign direct investment. Buying a portfolio will be more appropriate because the country is keen on raising capital from external sources. The use of FDI may be bureaucratic because of heavy government intervention.
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