Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
Define and discuss country risk assessment, using examples to illustrate your points.
Country risk assessment (CRA) is an evaluation of the risk of losing an investment in a particular country. It may be conducted by a bank or business and is increasingly political in nature.
The risks themselves may be economic or financial and include the balance-of-payments position, inflation levels, labor conditions, productivity levels, and militancy in unions. Government instability that would lead to currency convertibility restrictions, tariffs and quota changes, and tax rate and labor permit changes are also assessed. Reliability and impartiality of the legal system and the risk of terrorism may be assessed as well. CRA is affected by the nature of the business. Is it a hotel or a mining company? Also important is the length of time an investment would need to yield a satisfactory return. CRA is often conducted piecemeal by various company departments, and, increasingly, outside firms are involved in CRA. Examples of these points will vary.
Answer
This answer is hidden. It contains 60 characters.
Related questions
Q:
If people consider the context and relationships when they make decisions about the application of rules, they are likely to be:
A. universalist.
B. particularist.
C. achievement-oriented.
D. individualist.
Q:
The impact of the EU on the WTO could be said to be negative, since:
A. a country could belong to only one of these organizations.
B. the favored trade relationships among EU members are not extended to nonmember countries, so the EU undercuts the WTO.
C. the euro threatens other hard currencies supported by the WTO, such as the dollar and the yen.
D. the WTO does not collect dues from EU member-nations.
Q:
The World Bank is made up of one large institution, IBRD.
Q:
The Council of European Union, the primary policy-setting institution of the EU, is composed of:
A. the member-states' prime ministers or presidents.
B. the member-states' ministers who represent the specific area being discussed.
C. elected members from across Europe, elected by country.
D. appointed representatives from each member-state.
Q:
The World Bank funds infrastructure projects in developed countries.
Q:
According to the text, the domestic environment is all of the uncontrollable forces originating in the home country that surround and influence the firm's life and development.
Q:
Foreign trade zones are also called:
A. free trade zones.
B. transit zones.
C. free perimeters.
D. export processing zones.
E. all of the above.
Q:
The U.S. Export-Import Bank (Ex-Im Bank) offers the following:
A. export credit insurance.
B. guarantees.
C. direct and intermediary loans.
D. Working Capital Guarantee.
E. all of the above.
Q:
Freight forwarders' responsibilities may include all of the following except:
A. booking space on a ship.
B. preparing the export documents.
C. verifying that the seller has money in the bank.
D. arranging to have the merchandise delivered to the port.
E. D and C.
Q:
Companies wishing to export must first choose between:
A. exporting directly and using sales companies.
B. exporting indirectly and using joint ventures.
C. exporting directly and exporting indirectly.
D. exporting directly and licensing.
E. none of the above.
Q:
Most firms begin their involvement in overseas business by:
A. exporting.
B. licensing.
C. joint ventures.
D. wholly owned subsidiaries.
E. none of the above.
Q:
The e-commerce potential index developed in the text includes three indexes: market size, market growth rate, and e-commerce readiness.
Q:
A complete financial analysis is part of the financial and economic forces screening process.
Q:
Analysis of the paying habits of customers is studied as part of the sociocultural forces screening.
Q:
With patents:
A. there is standardization, to some degree, through the Paris Union.
B. there is no standardization, so often companies such as Nestl file many patent applications in different countries.
C. total harmonization has been reached through UN accords and the EPO.
D. an inventor is automatically granted rights to her invention as long as she completes a patent filing.
E. the first person to file is the one who receives patent protection.
Q:
Intellectual property:
A. excludes intangibles, which is why it is a difficult area.
B. includes thoughts and ideas, but not tangible products.
C. includes anything that is a result of a creative process that does not have material qualities.
D. includes anything that is the result of things created using someone's intellect.
E. excludes things found in nature, such as natural colors, scents, and sounds.
Q:
Usually, it is reasonable to assume that foreign law:
A. will be similar to U.S. law.
B. will differ from U.S. law and must be understood.
C. won't matter because you and your trading partner will agree to arbitrate.
D. will be biased against the foreigner.
E. will vary but that U.S. law will take precedence.
Q:
The degree to which a country's legal system is based on the rule of law makes no difference; it is personal relationships that matter in foreign environments.
Q:
According to the World Health Organization, about one-quarter of all drugs sold through "questionable" Internet pharmacies are estimated to be counterfeit.
Q:
Nontariff barriers that are not quantitative can be divided into two groups, those that are established by the government participation in trade and those that are administrative.
Q:
How could an IC benefit from leading and lagging?
Q:
Is triple-bottom-line accounting a reasonable approach to encourage businesses to take responsibility for the impact of their actions on social and environmental systems, or does it place an unrealistic burden on businesses to measure what may not be measurable?
Q:
International freight, insurance, and packing can add as much as 8 to 10 percent to the quoted price, depending on the sales term used.
Q:
These countries prefer debt to equity by large margins:
A. France, Italy, and Japan.
B. United Kingdom, Italy, and United States.
C. United States, Canada, and United Kingdom.
D. Japan, United States, and United Kingdom.
Q:
The capital structure of the firm can be raised externally through:
A. leveraging and bonds.
B. debt and equity.
C. debt and retained earnings.
D. retained earnings and bonds.
Q:
The process of transferring value across borders is complex because it involves:
A. currency exchange rates.
B. restrictions on the movement of funds.
C. differing tax systems.
D. A, B, and C.
Q:
In his book Cannibals with Forks, John Elkington puts forward the argument that:
A. capitalism can become civilized.
B. capitalism is not, by its very nature, uncivilized and destructive of natural resources.
C. natural resources are a God-given gift for mankind to use.
D. developing nations will become more competitive with Western nations.
Q:
The U.S. body that establishes accounting standards, the FASB, is:
A. a branch of the U.S. government.
B. elected by seat holders on the NYSE.
C. appointed by the chair of the U.S. House of Representatives Banking Committee.
D. a private organization.
Q:
In the temporal method, fixed assets such as real estate are translated at:
A. their market value.
B. their historic cost.
C. their assessed value.
D. an average of the period's rates.
Q:
Unanticipated shifts in exchange rates present risk to the international firm.