Strategy Project
MB0411
FIUMAN67262022BRICPROJECTPART2INSTRUCTIONS-3.docx
Group BRIC Country Strategy Assignment – Part II
Part 2 Instructions
Learning Goals of Part 2
The learning goal Part 2 is to provide an opportunity to learn about the kinds of “country risk” that companies are exposed to if they do a foreign direct investment into another country, and how these risks can be assessed, rated and understood. In this regard, the following definition of country risk is used.
· “The risk to the assets or expected earnings of assets invested by companies in countries other than their own, due to various political, economic, financial and cultural environments and events.”
For a more recent commentary on the BRIC countries view the following: Goldman Sachs | BRICs Videos and Stories
Examine each of the BRIC countries to determine their projected economic growth, country business environment and country risk. We have gathered assessments of the Country Risk from the Economist Intelligence Unit, which are available in the FIU Online Library. You will be provided a large amount of country and industry data to get you started, however, additional library research is encouraged.
As a result of this research, write a report following the following outline, which will incorporate the various tables above.
Strategic Risk Assessment Report
A. Detailed country risk assessments for the following countries.
1. Brazil
2. Russia
3. India
4. China
5. United States
B. Comparative country risk assessments showing all the countries.
C. Comparative Risk Scenario Watchlists showing all the countries.
D. Conclusions
ECONOMIST INTELLIGENCE UNIT COUNTRY RISK REPORTS
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COUNTRY |
EIU COUNTRY RISK REPORT |
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BRAZIL |
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RUSSIA |
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INDIA |
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CHINA |
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UNITED STATES |
Read the rationale behind these ratings and dig deeper by reading other EIU news stories about the political, economic, financial, business and regulatory environments in each country.
For each of the BRIC countries plus the United States, summarize the EIU Risk Reports using the following table. Then discuss the implications of the major risks on your client company operating in the country.
COUNTRY RISK
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COUNTRY |
RISK RATING |
COMMENTS |
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RISK RATINGS |
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OVERALL |
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Security Risk |
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Political Stability Risk |
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Government Effectiveness Risk |
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Legal and Regulatory Risk |
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Macro-economic Risk |
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Foreign Trade and Payments Risk |
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Financial Risk |
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Tax Policy Risk |
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Labor Market Risk |
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Infrastructure Risk |
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COUNTRY RISK COMPARISON
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COUNTRY |
OVERALL RISK RATING 2021 |
COMMENTS |
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BRAZIL |
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RUSSIA |
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INDIA |
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CHINA |
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UNITED STATES |
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Also, examine the specific risk scenario watchlist provided by the EIU and their likelihood of happening, the degree of harm to multinational companies operating in the country if they did happen and the resulting overall intensity of the scenario. Use the following table to present this analysis.
RISK SCENARIO WATCHLIST
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COUNTRY |
SCENARIO |
CATEGORY |
PROBABILITY |
IMPACT |
INTENSITY |
COMMENTS |
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Scenario 1 |
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Scenario 2 |
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Scenario 3 |
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Scenario 4 |
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Scenario 5 |
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Scenario 6 |
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Scenario 7 |
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Scenario 8 |
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Scenario 9 |
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COMPARISON OF MAJOR RISK SCENARIOS
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COUNTRY |
MOST INTENSE RISK SCENARIO |
COMMENTS |
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BRAZIL |
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RUSSIA |
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INDIA |
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CHINA |
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UNITED STATES |
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As a result of this research, write a report following the following outline, which will incorporate the various tables above.
Strategic Risk Assessment Report
E. Detailed country risk assessments for the following countries.
6. Brazil
7. Russia
8. India
9. China
10. United States
F. Comparative country risk assessments showing all the countries.
G. Comparative Risk Scenario Watchlists showing all the countries.
H. Conclusions
