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International Financial Management - Assignment Example
Pages 12 (3012 words)
In the present day business environment investments in third countries is an important step for the success of any business venture. By enabling the firm to take advantage of the economies of scale as well as operating in a wider market the investments in prospective third countries help the firm enhance its profitability and growth potential…
Hence the firm should undertake a comprehensive analysis of all the related issues and decide on the investment. In the given instance the company JMC Plc is considering an investment proposal to produce and market sportswear in Egypt. This paper envisages presenting a detailed report on the country risk analysis of Egypt with respect to the proposed investment and also the economic arguments for and against the foreign direct investments from different standpoints.
The purpose of the Country Risk Analysis report is to provide an in-depth critical information and analysis on the trade environment in the different countries. The risk factors associated with a country may be analysed in terms of its:
"The political environment is characterised by an extremelystrong executive and many areas, such as interior, defence, and justice, are outside parliamentary review and control." Business Anti-Corruption Portal Though the government run by Hosni Mubarak appears to be stable, there is an all round inefficiency crept in the judicial and public service sectors. This shows a negative outlook for the proposed investment in the country. ...
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