GMS 400 Lecture 3: GMS400 - Lecture 3
14 Apr 2017
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Country risk analysis performing due diligence on a country before entering the market. The purpose of country risk analysis is to determine the risk of entering a country"s market. Basically, you are conducting due diligence on a country before you enter it, similar to conducting due diligence on a company before buying it. There are three levels of country risk analysis. They lend to companies for projects and investments all over the world; therefore: They need to establish the risk premium for each country (basic commercial rate plus a percentage for the specific country risk) They need to determine their maximum exposure (lending limit) for each country. They lend up to their credit limit in a country for various projects. They have other projects for which companies need financing which have to wait until there is room in the country"s credit limit from the bank.
