Question
The Anderson Corporation is considering a project to set up a subsidiary in South Korea. Top management asked for a country risk analysis to help
The Anderson Corporation is considering a project to set up a subsidiary in South Korea. Top management asked for a country risk analysis to help make the decision. It first reviewed a country risk analysis performed for the company one year earlier, when it had planned to begin a major exporting business to South Korean firms. Then it updated the analysis by incorporating all current information on the key variables that were used in that analysis, such as South Koreas willingness to accept exports, its existing quotas, and existing tariff laws. The results of this country risk analysis were very favorable, and even more favorable than the results from the analysis one year earlier.
Based on this information, should the Anderson Corporation go forward with its project to set up a subsidiary in South Korea? Why or why not.
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