Question
Assauer ltd would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below. Political Risk
Assauer ltd would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below. 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% Assauer has assigned an overall rating of 80% to political risk factors and 20% to financial risk factors. Assauer is not willing to accept a country risk rating of less than 4.0. Should Assauer consider Glovanskia for investment?
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