JKH Corp is considering investment in Ukraine; trouble is that the Ukrainian government is facing severe issues with external debt and might default. The IMF is currently working with the government of Ukraine and has given them one month to restructure their foreign debts. You estimate there is a 50/50 chance of an IMF-mandated default and bailout

If you were advising JKH Corp, what would you tell them?

Group of answer choices

Under no circumstances should investment in Ukraine be considered at any time

Wait a month and if a default occurs, strongly consider making an investment

Invest now as a resulting currency devaluation would impact JKH positively

Any existing payables due in Ukraine should be hedged immediately

In such situations, the driving force behind default on external credit is most often:

Group of answer choices

The countrys inability to pay its external creditors

The countrys need for Direct Foreign Investment

The unwillingness of the countrys politicians to subject their constituents to austerity

The need to maintain direct intervention in currency markets

Suppose the investment under consideration in Ukraine is a public utility currently owned by the Ukrainian government. A chief difficulty with assessing the viability of such businesses is

Group of answer choices

Lack of past competition, thus making competitive position difficult to assess

Generally opaque or hidden record-keeping, making cash flow history difficult to assess

Economic uncertainty typical in a period of transition from a command to a market economy

All the above are typically issues in assessing privatized businesses