You are hired as a political consultant for General Motors Company, which is considering building automobile plants in three countries: Brazil, China, and Poland. Choose a country and analyze the political risk of investing in that country. In doing so,utilize websites such as https://www.cia.gov/library/publications/the-world-factbook  or any other relevant Internet resources. You may prepare a final report to GM using a format similar to Exhibit 16.10 .

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EXHIBIT 16.10 Political Risk Analysis: Vietnam Sovereign Rating: Moody's: B2, Outlook: Stable; S&P: BB, Outlook: Negative Political Strengths Economic Strengths Political stability with Communist Party in government since end of the country's civil war in 1975 Transformation to market oriented economy since late 1980s High GDP growth facilitated by foreign investment • Well educated and cheap labor force Sizable natural resources and advantageous location Economic Weaknesses Large fiscal and trade deficits and weak banking system Plethora of state-owned enterprises and less diversification • Widespread support for the CPV (Vietnam Communist Party) reflects its success in raising living standards and creating and maintaining security Political Weaknesses Inconsistent and evolving regulations Unreliable legal system and corruption • A lack of financial transparency, insufficient protection for minority owners, and poor corporate governance Political & Governance Indicators • World Bank Ranking - Ease of doing business • Freedom House - Political rights and civil liberties Transparency International Ranking- Corruption Perception Index • OECD country risk rating (Scale: 0-7, 0 is least risk, 7 is highest risk) 78th/183 Not Free 116th/180 5 • Industry and credit policies favor state-owned enterprises Economic Indicators • GDP ($US bn) GDP per capita ($US) • Real GDP growth (15-year average, %) • Fiscal balance (% of GDP) • Public debt (% of GDP) Foreign direct investment (% of GDP) • Current account (% of GDP) ● External debt (% of GDP) Foreign reserves (% of GDP) 。 104 1,174 7.3 -6.4 53.0 6.6 -3.8 42.1 11.6