2. Discuss how the IFC has constructed their investment to minimize the sovereign risk and provide some suggestions as to how the IFC can further reduce the sovereign risk. When discussing sovereign risk and how it is affected by the strategies of the relevant players: the IFC, Alusaf, Eskom, EdM, the Mozambique government and the South African government. Use game theoretic analysis in your explanation. (You may even want to depict a game tree and reiate how your suggestions involve addressing the hold-up issue. You need not discuss the roles of all the different players in this game ) [For those who are not familiar with the meaning of sovereign risk, what I think is a good definition can be found at (htm:ffwww.businessdictionary.comfdefinitionfsovereign-risk.htrnl ) which states: \"Probability that the government of a country (or an agency backed by the government) will refuse to comply with the terms of a loan agreement during economically difficult or politically volatile times. Although sovereign nations don't 'go broke', they can assert their independence in any manner they choose, and cannot be sued without their assent.\"] LII-.l 'I-r-'I