Professional Documents
Culture Documents
ANALYSIS
Presented by Group 6 :
• Fika Zuarti
• Elga Devita
• M. Rafli Imron
• Romi Hidayat
• Rony Yandra
Learning Objective
1. To define what country risk means from the standpoint
of an MNC
2. To describe the social, cultural, political, and economic
factors that affect the general level of risk in a country
and identify key indicators of country risk and economic
health
3. To describe what we can learn about economic
development from the contrasting experiences of a
variety of countries
4. To describe the economic and political factors that
determine a country’s ability and willingness to repay its
foreign debt
PART I. THE MEASUREMENT OF
POLITICAL RISK
Subjective Factors
1. Profit Opportunity
Recommendation
2. Political Risk and Uncertain
Property Rights
Political Risk and Uncertain
Property Right
Example
Property Rights in China
• Expectation of devaluation
They make the shift of capital when domestic interest
rates are artificially held down by their governments
D. Resource Base
-lack of strong work ethic
E. Country Risk and Adjustment to
External Shocks
1.What are the impacts of
external shocks:
-how well a nation responds
varies
ECONOMIC AND POLITICAL
FACTORS