How would you tradeoff the degree of country risk versus the business environment ratings.

Fiu amba 670 – learning goals of the team project assignment

When trading off the degree of country risk versus business environment ratings, it is important to take into consideration the size of the market when making decisions. For example, if a company wishes to invest in a country that has a high degree of country risk due to political instability or economic fragility, but also provides access to an untapped large emerging market, then this could be an attractive proposition since it might present opportunities for significant future growth potential.

On other hand ,investing smaller markets with less inherent risks associated brings its own set advantages as well  If market relatively untouched competition lower prices steadier need constantly innovate keep up high competitors via R&D efforts brands suffer accordingly . Furthermore cost operating likely much cheaper netting higher margins cash flows long run provided team adopts prudent management strategies taking into account all potential contingencies works towards mitigating danger said elements occurring during investment cycle  Ultimately trade off made between two depends upon individual situation goals order get most return capital possible running least amount risk spreading investments available sources course time.