--%>
Assignment Help - homework help

Case study of an economic and labour situation

The woman in the dark suit (serious women always wear black suits) leafed through the papers on her desk. She was a fund manager and she was nearing the deadline for an investment decision by one of her leading clients, who wanted to invest in sovereign bonds in a developing country. She had identified three possible candidates with low, middle and high income levels for the investment.  Her task now was to select one of the three as the investment site, and to rank the others in order of priority in case her client had an objection to the number-one choice.

The woman had data on certain basic indicators for the same six-year period for all countries. She also had some basic descriptive data on each country’s political, economic and labour situation and indicators on certain aspects of the individual countries´ institutions so that she could evaluate other types of risk. 

1. Which variables from the data presented here should the fund manager select to assess the risk represented by these countries?  Defend your approach and prioritize (do not use all variables some might not be relevant in your decision!!). Remember that it is an investment in government bonds NOT portfolio investment or FDI.

2. How will she (and you) rank the countries for the investment decision based on the macroeconomic data? Justify. Present the scorecard you used in your analysis.

3. Would your decision change if you were looking for an FDI investment in the manufacturing sector? Be brief (just state how the variables that you considered for government bonds would change for FDI investment)

   Related Questions in Financial Accounting

  • Q : Introduction of the term Financial

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

    		•
  • Q : Trends in international business

    Explain three important trends which have prevailed in the international business during last two decades.

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : Effects of foreigners portfolio

    Since early 1980s, foreign portfolio investors has purchased a considerable portion of the U.S. treasury bond issues.  Explain some short-term and long-term effects of the foreigners’ portfolio investment over the U.S. balance of payments.

    		•
  • Q : Accounting profit Normal 0 false false

    Normal 0

  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•
  • Q : Benefits for a company to cross-list

    Explain the benefits you can think of for a company to (a) cross-list its equity shares on more than one national exchange, and, (b) to source new equity capital from foreign investors as well as domestic investors.

    		•
  • Q : Prepare the journal entry to record the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance % uncollectible 0-30 days $674,000 0.5% 31-60 days 186,000 1.2% <

    		•
  • Q : Define Budget Manual Give a short

    Give a short introduction of the term ‘Budget Manual’?

    		•