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5. Assauer, Inc., would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below. Assauer
5. 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?
\begin{tabular}{|l|c|c|} \hline POLITICAL RISK FACTOR & ASSIGNED RATING & ASSIGNED WEIGHT \\ \hline Blockage of fund transfers & 5 & 40% \\ \hline Bureaucracy & 3 & 60% \\ \hline \end{tabular} \begin{tabular}{|l|c|c|} \hline FINANCIAL RISK FACTOR & ASSIGNED RATING & ASSIGNED WEIGHT \\ \hline Interest rate & 1 & 10% \\ \hline Inflation & 4 & 20% \\ \hline Exchange rate & 5 & 30% \\ \hline Competition & 4 & 20% \\ \hline Growth & 5 & 20% \\ \hline \end{tabular}Step by Step Solution
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