Multinational corporations are expected to conduct rigorous country risk analyses for their international investments. Prepare a detailed report to evaluate the country risk of Germany. In general, country risk analysis consists of two parts: political and financial risk factors. Investigate these factors and assign a value on them from 1 to 5 (5 being the lowest risk) to calculate political and financial risk assessments separately. An equally-weighted average of political and financial risk numbers will give you an overall assessment of the country risk. In a few paragraphs Describe results
Political Risk Characteristics:
attitude of consumers in the host country
actions of host government
blockage of fund transfers
currency inconvertibility
war
inefficient bureaucracy
corruption
Financial Risk Characteristics:
economic growth
interest rates
exchange rates
trade deficit (surplus)
inflation
fiscal policy
competitiveness