Bambino Ltd would like to assess the country risk of South Africa. Bambino Ltd has identified various political and financial risk factors, as shown below.
Political Risk Factor Assigned Rating Assigned Weight Blockage of fund transfers 6 55% Bureaucracy 2 45% Financial Risk Factor Assigned Rating Assigned Weight Interest rate 4 20% Inflation 5 15% Exchange rate 4 10% Competition 3 30% Growth 7 25%
Bambino Ltd has assigned an overall rating of 75 percent to political risk factors and of 25 percent to financial risk factors. The investment policy for Bambino Ltd mentions that the company can only invest in a country if the country risk is below 4.5. Should Bambino Ltd consider South Africa for investment?
