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Please compare Country A and Country B with respect to Sovereign risk. a) For each measure listed, please begin by ranking the two countries: 1

Please compare Country A and Country B with respect to Sovereign risk.

a) For each measure listed, please begin by ranking the two countries: 1 = lower risk; 2 = higher risk. (2 marks)

(Copy and paste the table into the answer panel and populate)

Measure

Country A

Country B

Rank A

Rank B

Debt service ratio

110

100

Import ratio

40%

60%

Investment ratio

18%

12%

VAREX

0.02

0.015

b) Which country do you believe has the lower sovereign risk? Why?

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