Reference no: EM132974596

Risk Analysis for the United States

Howell notes that political risk is "...the risk or probability of occurrence of some political event(s) that will change the prospects for the profitability of a given investment." (Howell, p18) The presence of country risk exists in all political environments from Command to Cooperate to Mediate. This includes countries assumed to be rather stable like the United Kingdom, which is now facing considerable uncertainty over its exit from the European Union. Brexit resulted from political and economic processes that are now threatening to unleash significant consequences.

The United States also presents a country risk profile. As a citizen/resident, you are best placed to analyze the position of the United States relative to the continuum of causes and effects currently existing in our political and economic environment. Using the graphic on the Dimensions of Risk and Consequences below:

Using the information you provided in Question 1, analyze the placement of your responses in terms of the overall country risk of the US. Some considerations might be:

• Why do you consider each factor to be political or economic in origin? 
• Why do you consider each factor to be stabilizing or destabilizing in effect? 
• Give specific examples that might affect business conditions and/or specific companies in the US. 
• How will this affect the global competitive position of the US?