--%>

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 : What is Casting What is Casting in

    What is Casting in Accounting. What is its significance?

  • Q : Define the term Kiting Define the term

    Define the term Kiting in Accounting stream?

  • Q : Future spot exchange rate Describe

    Describe about the conditions under which forward exchange rate may be an unbiased predictor of the future spot exchange rate.

  • 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

  • Q : Report on Business memo analyzing

    Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.

  • Q : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:

  • Q : Equilibrium of balance of payments

    State mechanism that restores equilibrium of balance of payments in case it gets disturbed below the gold standard.

  • Q : Define the term Debtor Define the term

    Define the term Debtor. Is they our client?

  • 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 : Bankruptcy A legal process that allows

    A legal process that allows a debtor, either a person or a business, to redundant some or all of the debt. The normal process involves selling asset and using the proceeds to pay off creditors in an order and/or in an amount determined by a judge. Some types of bankru