Reference no: EM133339280 , Length: word count:2500

You need to write a minimum of 2000 words (excluding graphs, tables, and references) and include a table of contents, introduction, conclusion, and reference section. Your quotes should be limited to a line each. They will be excluded from your 2000-word count.Although this paper has 2 separate sections, you have to develop a common table of contents, introduction, and conclusion related to the concepts of BF 421.

Please be careful about using information found on general websites (such as Investopedia or Wikipedia) since it is often not accurate or current. You can use concepts/references from your textbook, slides, or from the list of sources given below. In addition, central banks often provide good statistical sections on their websites.

Section 1: see pdf file on Africa
Answer each question as a separate paragraph in your paper.
a) Read the article and provide details on the free trade agreement they are referring to.
b) What are the country risk concepts included in this article?
c) What are the pros and cons of free trade agreements?
d) What are the current trade agreements that are in place in the U.S.?
e) Pick an African country (except South Africa) and find their current account balance for 2019. Do they have a surplus or deficit? Explain what they import and export. Who do they trade with?
f) What is the currency of the African country you picked? Is it a floating or pegged currency? Explain the recent history of their exchange rate system.

Section 2: see pdf file on China
a) Explain in details the categories of political risk presented in this article.
b) Explain the differences between China's currencyand Hong-Kong's currency.
c) What are the restrictions for foreign investors who want to trade on China's stock markets? Indicate your sources.
d) Do China and Hong-Kong have Sovereign Wealth Funds? What are they?
e) Provide 2020 statistics on the SWFs from part d. Where do the funds come from and what are they used for?