Should the company invest in new zealand or indonesia

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Reference no: EM133076553

Bank deposit rate in New Zealand is 2.5% and deposit rate in Indonesia is 6.5%. A New Zealand company is considering a fixed-income investment.

Additional information available: New Zealand Indonesia

GDP per capita (US dollars) US$ 42,084 US$ 4,135

Expected GDP growth (annual) 2.1% 5.5%

Expected inflation rate (annual) 1.5% 5.5%

Corruption perception index score 88/100 37/100

Corruption perception index rank 1/180 102/180

S&P Sovereign credit rating AA+ stable BBB negative

-Should the company invest in New Zealand or Indonesia? Explain briefly why (use the provided information to answer the question).

-What are the risks and limitations potentially involved in investing in Indonesia?

Reference no: EM133076553

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