Gabriel Resources: Foreign Direct Investment in Romania Harvard Case Solution & Analysis

Gabriel Resources, a Canadian junior mining corporation, encountered a challenge in its Rosia Montana mine project in Romania when in political tension it confronted with issues in investor relations at the end of the year 2013. The Romanian Parliament completely disagreed in granting the permission for the gold and silver mines in recent voting because they had the concerns on the structures of legal and environmental framework.

However, the organization guarantees that its project will strengthen the state’s economy and would help to improve the existing infrastructure and employment in the state, both national and international civilian. On the other hand, various NGOs protested against this development which they consider as affecting not only the fragile geographic ecosystem, but also traditional artifacts, which has been the focus of many tourists each year.

The approval of this draft bill would help the company to develop the potential mines, which has not been able to generate revenue for last 15 years in working. This has shaken the confidence of many investors and the company’s share value is also declining. In what manners the company can successfully build the confidence of its shareholder and could control the declining value of its share? How could it develop the support of the Romanian government and people?

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Gabriel Resources: Foreign Direct Investment in Romania

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