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'Today, goods, services, information, ideas and people cross borders with unprecedented velocity - and the trend is only intensifying. For company leaders seeking profit in

'Today, goods, services, information, ideas and people cross borders with unprecedented velocity - and the trend is only intensifying. For company leaders seeking profit in places that are socially, culturally, and governmentally alien, the complementary insights of political and economic risk analysts are vital.'

(Bremmer, 2005)

Required:

(a)In the context of foreign direct investment, explain the different methods that companies can use to measure political and economic risk.

(b)Using the empirical literature to support your answer, critically evaluate the usefulness of country risk measures to forecast economic and political risks.

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