【正文】
Country Risk Analysis16 ChapterSouthWestern/Thomson Learning 169。 2023See for spreadsheets to acpany this chapter.C16 2Chapter Objectives? To identify the mon factors used by MNCs to measure a country’s political risk and financial risk。? To explain the techniques used to measure country risk。 and? To explain how the assessment of country risk is used by MNCs when making financial decisions.C16 3Country Risk Analysis? Country risk represents the potentially adverse impact of a country’s environment on the MNC’s cash flows.C16 4Country Risk Analysis? Country risk can be used:164。 to monitor countries where the MNC is presently doing business。164。 as a screening device to avoid conducting business in countries with excessive risk。 and164。 to improve the analysis used in making longterm investment or financing decisions.C16 5Political Risk Factors? Attitude of Consumers in the Host Country164。 Some consumers may be very loyal to homemade products.? Attitude of Host Government164。 The host government may impose special requirements or taxes, restrict fund transfers, subsidize local firms, or fail to enforce copyright laws.C16 6Political Risk Factors? Blockage of Fund Transfers164。 Funds that are blocked may not be optimally used.? Currency Inconvertibility164。 The MNC parent may need to exchange earnings for goods.C16 7? War164。 Internal and external battles, or even the threat of war, can have devastating effects.? Bureaucracy164。 Bureaucracy can plicate businesses.? Corruption164。 Corruption can increase the cost of conducting business or reduce revenue.Political Risk FactorsC16 8Corruption Perceptions IndexThe index, which is published by Transparency International, reflects the degree to which corruption is perceived to exist among public officials and politicians.In 2023, 91 countries are ranked on a clean score of 10.Rank Country Score1 Finland 3 New Zealand 4 Singapore 7 Canada 13 . 14 Hong Kong 16 Israel 16 . 18 Chile 20 Germany 21 Japan Rank Country Score23 France 26 Botswana 27 Taiwan 38 South Africa 42 South Korea 46 Brazil 51 Mexico 57 Argentina 57 China 79 Russia 88 Indonesia C16 9Online ApplicationC16 1