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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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