--%>

Evaluation of political risk

State the factors you would consider in the evaluation of the political risk related to the making of FDI in the foreign country?

E

Expert

Verified

Factors which are to be considered involves:

a) Political and Government system of the host country;
b) Track record of the political parties and their relative strength;
c) Degree of integration into the world system;
d) Ethnic and religious stability of the host country;
e) Regional security; and
f) Key economic indicators.

   Related Questions in Financial Accounting

  • Q : Explain Return on Assets or ROA Return

    Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings

  • Q : Free-riding firms without tradable

    Explain how do firms with no tradable assets get free-ride from the firms whose securities are internationally tradable?

  • Q : Describe Long Holding Period Describe

    Describe Long Holding Period briefly with suitable example?

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

  • Q : Calculate the PV You expect the price

    You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ   3  ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb

  • Q : Advantages for giving Cash Discount

    What are various advantages for giving Cash Discount?

  • Q : Determinants of operating exposure

    Describe determinants of the operating exposure.

  • Q : Characteristics of straight fixed-rate

    State the characteristics of the straight fixed-rate bond market instrument.

  • Q : Recommended action for GM to manage its

    General Motors exports the cars to Spain however the strong dollar against the peseta, hurts the sales of GM cars in the Spain. In Spanish market, GM faces the competition from the French and Italian car makers, like Renault and Fiat, whose currencies stays stable wit

  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require