Suppose that Bosa Co., a U.S.-based MNC, is considering establishing a subsidiary in a specific foreign...

 

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Suppose that Bosa Co., a U.S.-based MNC, is considering establishing a subsidiary in a specific foreign country. However, Bosa is concerned about that country's country risk. Bosa decides to use a checklist approach to derive an overall risk rating for the country of interest. First, Bosa has identified key political risk factors for this specific country. Bosa then rates each of these factors on a scale of 1-5 and assigns weights to each factor based on the relative importance of each factor to the MNC. The values can be seen in the table. Complete the last column of the table, filling in the weighted value factor of each risk factor and the total political risk rating. Political Risk Factors Blockage of fund transfers Bureaucracy Rating from 1-5 3 N W 2 Weight 30% 70% Political Risk Rating= = Weighted Value of Factor Suppose that Bosa Co., a U.S.-based MNC, is considering establishing a subsidiary in a specific foreign country. However, Bosa is concerned about that country's country risk. Bosa decides to use a checklist approach to derive an overall risk rating for the country of interest. First, Bosa has identified key political risk factors for this specific country. Bosa then rates each of these factors on a scale of 1-5 and assigns weights to each factor based on the relative importance of each factor to the MNC. The values can be seen in the table. Complete the last column of the table, filling in the weighted value factor of each risk factor and the total political risk rating. Political Risk Factors Blockage of fund transfers Bureaucracy Rating from 1-5 3 N W 2 Weight 30% 70% Political Risk Rating= = Weighted Value of Factor

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