Business & Finance Fin 4604- Country Risk Report Assignment

Business & Finance Fin 4604- Country Risk Report Assignment


In this assignment, you will create a project which includes the following:

  •  Collect information on a developing country
  •  Evaluate the main risks affecting FDI in the country
  •  Summarize the information and provide a recommendation


Prepare a risk analysis of a country of your choice, with the following restrictions:

The country or economy has to be considered a “developing economy” by an international organization such as the UN, the World Bank, or the IMF; and/or The country’s capital markets must be considered “emerging market” by MSCI

You cannot select one of the countries analyzed in the textbook, in the 10th edition (Chapter 16, Exhibits 16.10-Vietnam, and 16.11-Turkey) or in earlier editions. (See page 463 in textbook to see list of countries to choose from)

Format: You will summarize your findings and conclusions following the format of exhibits 16.10 and 16.11 (i.e., a one-page exhibit summarizing the relevant information, followed by two short paragraphs that explain the meaning and implications of the information in the exhibit, see the following example



The risk analysis should be done from the perspective of a multinational company considering investing (i.e., FDI) in the country. Refer to Chapter 16 to understand the types of risks associated with FDI and the appropriate evaluation (pp. 458-465). You may also find it helpful to review the exhibit and discussion associated with sovereign ratings on p. 350.

I recommend you start at the link below to gather essential country information, but then consult other sources to complete your analysis:

Export Finance Australia – Country ProfilesLinks to an external site.

Look at recent Wall Street Journal, Financial Times, or The Economist articles for current events that have put the country in the news and discuss what the current climate is for multinational investment.

Take advantage of existing sources available through the library (Databases, Browse, Subject=Business and Economics)

Use resources from international organizations, such as the World Bank, the IMF, OECD, etc. as well as local resources if possible.

In addition to economic, political, and financial variables following chapter 16, make sure to describe the type of currency regime (pegged, floating), and whether there are currency derivatives available to manage currency risk.

Also, discuss the importance of foreign capital flows for the country (i.e., relate to the Balance of Payments chapter).

It is said that there are four major factors that attract foreign direct investment:

  • Stable property rights
  • Peaceful industry-labor relations
  • Political stability
  • Cost advantages in wages, taxes, and infrastructure

Make sure to cite sources as appropriate (this can be done in a separate page if necessary, following MLA style guidelines)

You will submit your work to this Canvas assignment page. Refer to the attached rubric for grading details. This assignment will close at the stated due date and time. Late submissions will not be possible.