ARBUS301 Lecture Notes - Lecture 8: Country Risk, Trade Barrier, Protectionism
16 Dec 2019
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Country risk: exposure to potential loss or adverse effects on company operations and profitability caused by developments in a country"s political and/or legal environments. Government intervention, protectionism, and barriers to trade and investment. Mismanagement or failure of the national economy. Lowest scores: switzerland (8, singapore (11, hong kong (13, norway and australia (14) Highest scores: syria (87, somalia (86, venezuela (78, sudan (78, guinea (78) Denmark, hong kong, new zealand, ireland, sweden, canada, norway, singapore, Political system: a set of formal institutions that constitute a government. It includes legislative bodies, political parties, lobbying groups, and trade unions. The system also defines how these groups interact with each other. Three major types of political systems: totalitarianism, socialism, democracy. Totalitarianism: government controls all economic and political matters, either theocratic (religion-based) or secular, a state party is led by a dictator. Europe, brazil, india: government intervention in the private sector, corporate income tax rates are higher.
