ABC Ltd would like to assess the country risk of South Africa. ABC Ltd has identified various political and financial risk factors, as shown below.

Political Risk Factor Assigned Rating Assigned Weight Blockage

of fund transfers 6 55%

Bureaucracy 2 45%

Financial Risk Factor Assigned Rating AssignedWeight

Interest rate 4 20%

Inflation 5 15%

Exchange rate 4 10%

Competition 3 30%

Growth 7 25%

ABC Ltd has assigned an overall rating of 75 percent to political risk factors and of 25 percent to financial risk factors. The investment policy for ABC Ltd mentions that the company can only invest in a country if the country risk is below 4.5. Should ABC Ltd consider South Africa for investment ? (13)