Country Risk Ratings Assauer, Inc., would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below. Assauer has assigned an overall rating of 80 percent to political risk factors and of 20 percent to financial risk factors. Assauer is not willing to consider Glovanskia for investment if the country risk rating is below 4.0. Should Assauer consider Glovanskia for investment?

POLITICAL RISK FACTOR ASSIGNED RATING ASSIGNED WEIGHT Blockage of fund transfers 5 40%

Bureaucracy 3 60%

FINANCIAL RISK FACTOR ASSIGNED RATING ASSIGNED WEIGHT Interest rate 1 10%

Inflation 4 20%

Exchange rate 5 30%

Competition 4 20%

Growth 5 20%