Reference no: EM134612 , Length: 2128 Words

Question

Case Study - Country Risk Analysis and Managing Crises

Tower Associates, by F. John Mathis, Paul Keat and John J. O'Connell. This case study can be originate in the Harvard Case Study website. This will take you to an ‘Authorized Student register and log-in' page. If this is your first Course pack purchase you must to register on the site to create a username as well as password. If you have previously purchased a course pack, log in with your existing username as well as password. Follow the prompts to log-in as well as purchase the course pack.

Please response the subsequent questions about the case study in an appropriately formatted APA paper in 7-10 pages and at least three journal articles- Are there any hidden expectations or price rigidities in the country or countries that might constrain market force indicators from revealing the true economic health of the country, thus either preventing government policy actions from correcting the problems or else otherwise making them ineffective and counterproductive?

What is the current domestic as well as international economic situation of each country relative to the benchmark performance measures for that country? Is the country presently following appropriate economic policies from a domestic as well as an international perspective? Deliver supporting justification for your answer. When the tools of country risk analysis are practical to the different countries being analysed which country is more likely to have what kind of crisis besides why?

If you endorse that Tower Associates proceed with a transaction in one of the nominated countries which strategy would you suggest they follow- a foreign exchange hedging strategy or a country risk crisis management strategy? Elucidate as well as justify your recommendation. What are some of the steps that Tower Associates can take to assistance mitigate and manage some of the risk involved if they proceed with the transaction such as- foreign exchange risk, sovereign risks, liquidity risks, market risks and insolvency as well as credit risks.