Course Objectives:
The primary objective of this course is to enable the students to understand what country risk is and provide them with the tools to analyze country risk with all aspects (ie economic, political and social etc.). Country analysis or country risk analysis is widely used for international business and finance transactions. It is very important for better cross-border investment and lending decisions.
Content:
There are many economic, political and social developments happening in various countries affecting exporters, international investors and lenders almost every day. Such events are causing cross-border risks for the international business community. An unexpected coup d'etat, election, uprising, currency collapse, a terrorist act, or a currency collapse can completely transform the political and economic landscape of a country, a region, or the world.Therefore, country risk is significantly relevant for students who are studying international management and will have professional roles later in their careers as export managers, managers at multinational companies or international bankers. With this regard, this course will provide students with a comprehensive introduction to country risk analysis. Throughout the course, instead of focusing on a specific country or region, a more general and practical analytical approach will be adopted to analyze country risk. By the end of the course, the students will have a strong understanding of different types of country risks, sources of country risk, risk indicators, analytical methodologies, and strategic perspectives and tools to manage country risk.The course will cover country risk issues with a special focus on foreign market entry, foreign direct investment and international lending operations. The topics to be covered in the course will include the following:
· Foreign market entry and t he foreign market environment: Economic, political and legal forces and Their effects on international business and finance
· Information gathering for country analysis for international investment and lending decisions
· Political risk, economic risk, sovereign risk and country risk
· Country risk and analytical methodologies
· Country risk indicators and early warning systems
· Economic growth and country risk analysis
· Fiscal policy and country risk analysis
· Monetary policy and country risk analysis
· Financial systems and country risk analysis
· Political risk and country risk analysis
· The balance of payments and country risk analysis
· International lending, sovereign debt and country risk analysis
· Foreign direct investment and country risk analysis
· Country risk management techniques
Literature:
Bouchet / Clark / Groslambert, Country Risk Assessment - A Guide to Global Investment Strategy, Wiley, 2003.
Kosmidou / Dolimpos / Zopounidis, Country Risk Evaluation, Springer, 2008.
Krayenbuehl, Cross-border Exposures and Country Risk, Woodhead Publishing, 2001.
Poole-Robb / Bailey, Risky Business - Corruption, Fraud, Terrorism and Other Threads to Global Business, Kogan Page, 2002.
Ramady, Political, Economic and Financial Country Risk, Springer, 2014.
Toksoz, Guide to Country Risk - How to identify, manage and mitigate the risks of doing business across borders, The Economist Books, 2014.
From Efferink / Kool / Veen, Country Risk Analysis, FMS, 2003.
Wagner, Managing Country Risk - A Practitioner's Guide to Effective Cross-Border Risk Analysis, CRC Press, 2012.
- Dozent/in: Emin Akcaoglu
- Dozent/in: Petra Dreßler
- Dozent/in: Petra Dreßler
- Dozent/in: Jeffrey Johnson