--%>
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 : 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 : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

    		•
  • Q : Problem on National income Providing

    Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.

    		•
  • 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 : Liabilities and Assets in Balance Sheet

    Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

    		•
  • Q : Advent of euro affecting international

    Explain how the advent of euro would affect the strategies of international diversification.

    		•
  • Q : Multinational corporations Explain

    Explain Multinational corporations (MNCs) and what the economic roles do they play?

    		•
  • Q : Define Financial Accounting Give a

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

    		•
  • Q : Financial and Operational measures of

    State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?

    		•
  • Q : Asset Owned by an entity, something

      Owned by an entity, something that provides benefits and whose cost can be measured. The measure of the value of assets in dollar appears on the

    		•