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?
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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.
In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.
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