BFRC Auditing (BFRC-Partners) Company, originated in Germany, would like to assess the country risk of Turkey. BFRC-Partners has identified various political and financial risk factors after Covid-19, as shown below. BFRC-Partners has assigned an overall rating of 80 percent to political risk factors and of 20 percent to financial risk factors. BFRC-Partners is not willing to consider Turkey for investment if the country risk rating is below 4.0. Should BFRC-Partners consider Turkey for investment?

POLITICAL RISK FACTORS	ASSIGNED RATING	ASSIGNED WEIGHT
Factor 1	5	40 %
Factor 2	3	60 %

FINANCIAL RISK FACTORS	ASSIGNED RATING	ASSIGNED WEIGHT
Factor 1	1	10%
Factor 2	4	20%
Factor 3	5	30%
Factor 4	4	20%
Factor 5	5	20%

1. Calculate the country risk of Turkey and decide whether to invest or not to this country.
2. Explain why foreign exchange rates are important for investment? Please explain it.
3. Why companies need to forecast Exchange rates? Is it easy to estimate the Exchange rate?