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7. Country risk rating In doing country risk rating for a country called Bapua-Ginny a country analyst made the following observations: Variable/Ratio Weight Value Product
7. Country risk rating In doing country risk rating for a country called Bapua-Ginny a country analyst made the following observations: Variable/Ratio Weight Value Product GNP growth 10 0.05 GNP/Population 5 0.50 Inflation -10 0.10 5 0.75 Reserves/ Imports 15 -0.15 Current Account/ GNP Debt service ratio -25 0.25 Debt/ GNP -15 0.30 Political stability 15 0.50 Based on the observations above the country analyst wants to calculate a country risk rating-score for this country. Please fill out last column entitled 'Product based on data provided. (6 points) 8. Now calculate the country risk rating-score by adding all the numbers you entered in the column entitled 'Product' in Question 7 above. How do you normalize this country risk rating-score? What possible use can this normalized country risk rating-score be for multinational financial-managers? (6 points) 7. Country risk rating In doing country risk rating for a country called Bapua-Ginny a country analyst made the following observations: Variable/Ratio Weight Value Product GNP growth 10 0.05 GNP/Population 5 0.50 Inflation -10 0.10 5 0.75 Reserves/ Imports 15 -0.15 Current Account/ GNP Debt service ratio -25 0.25 Debt/ GNP -15 0.30 Political stability 15 0.50 Based on the observations above the country analyst wants to calculate a country risk rating-score for this country. Please fill out last column entitled 'Product based on data provided. (6 points) 8. Now calculate the country risk rating-score by adding all the numbers you entered in the column entitled 'Product' in Question 7 above. How do you normalize this country risk rating-score? What possible use can this normalized country risk rating-score be for multinational financial-managers? (6 points)
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