Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that Bosa Co., a U.S.-based MNC, is considering establishing a subsidiary in a specific foreign country. However, Bosa is concerned about that country's

 

Suppose that Bosa Co., a U.S.-based MNC, is considering establishing a subsidiary in a specific foreign country. However, Bosa is concerned about that country's country risk. Bosa decides to use a checklist approach to derive an overall risk rating for the country of interest. First, Bosa has identified key political risk factors for this specific country. Bosa then rates each of these factors on a scale of 1-5 and assigns weights to each factor based on the relative importance of each factor to the MNC. The values can be seen in the table. Complete the last column of the table, filling in the weighted value factor of each risk factor and the total political risk rating. Political Risk Factors Blockage of fund transfers Bureaucracy Rating from 1-5 3 N W 2 Weight 30% 70% Political Risk Rating= = Weighted Value of Factor

Step by Step Solution

3.56 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the weighted value factor of each risk factor and the total ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

More Books

Students also viewed these Finance questions

Question

3. Housekeeping, such as watering plants or storing personal items

Answered: 1 week ago