Should assauer consider glovanskia for investment

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Reference no: EM13935527

Country risk ratings. Assauer Ltd would like to assess the country risk of Glovanskia. Assauer has identified various political and financial risk factors, as shown below.

Political Risk Factor	Assigned Rating	Assigned Weight
Blockage of fund transfers	5	40%
Bureaucracy	3	60%
Financial Risk Factor	Assigned Rating	Assigned Weight
Interest rate	1	10%
Inflation	4	20%
Exchange rate	5	30%
Competition	4	20%
Growth	5	20%

Assauer has assigned an overall rating of 80% to political risk factors and of 20% to financial risk factors. Assauer is not willing to consider Glovanskia for investment if the country risk rating is below 4.0. Should Assauer consider Glovanskia for investment?

Reference no: EM13935527

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