When quantifying country risk:

a. weights should be equally allocated among factors.

b. weights should be assigned to the political and financial factors according to their perceived importance.

c. it is not generally necessary to construct separate ratings for political and financial risk since these will be equally weighed in the final analysis.

d. the derived factors will be identical for all MNCs conducting business in that country.

Question

Business

Cedric Mccall

11 June, 15:42

When quantifying country risk:

a. weights should be equally allocated among factors.

b. weights should be assigned to the political and financial factors according to their perceived importance.

c. it is not generally necessary to construct separate ratings for political and financial risk since these will be equally weighed in the final analysis.

d. the derived factors will be identical for all MNCs conducting business in that country.

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Answers (1)

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Dangelo Blackwell · Answer 1

The correct answer is b. weights should be assigned to the political and financial factors according to their perceived importance.

Explanation:

The determination of risk certifications that are taken into account for investment in a country, takes into account fundamental factors that ensure a sustained and less restrictive operation over time, which is directly related to the decisions made by politicians and banks already which are the sectors directly involved in an investment decision. Other important factors are usually located in citizen security, access to ports and airports, etc.