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?