--%>
Assignment Help - homework help

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 : Cost of accidents to an employer

    Discuss the cost of accidents to an employer in from a perspective of why prevention is better than cure ?

    		•
  • Q : International foreign and domestic trade

    Explain some of the reasons why international foreign trade is difficult and risky from the perspective of exporter than is domestic trade.

    		•
  • Q : Double taxation Specify some of the

    Specify some of the methods taxing authorities utilize to remove or diminish evil of double taxation?

    		•
  • Q : Accounting estimate Normal 0 false

    Normal 0

  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

    		•
  • Q : Drug maker-stymie generic competition

    Drug maker want to stymie generic competition. Elucidate this statement.

    		•
  • Q : What bid price per widget should you

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land

    		•
  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

    		•
  • Q : Book-value method of accounting for

    The stock is recorded at the book value of debt. The convertible debt is removed at the book value, the number of share times par is added to the stock account, and the remaining amount is plugged in to additional paid in capital. Contrast with the market value in whi

    		•
  • Q : Policy issued by upper management What

    What would you do when upper management issues a new policy and it was problematic to you? Would you pursue the new policy?

    		•