Question

Country risk assessment should be used when: a. determining whether to establish a subsidiary in a foreign country. b. determining whether to continue business in a foreign country. C. A and B d. none of the above

Answer 1

Answer:

C. A and B

Explanation:

A country risk assessment is a vital step required before considering establishing business in a foreign country. It is also necessary in determining if a business should continue in a foreign country (abroad).

This assessment is both qualitative and quantitative, as it takes into consideration thorough evaluation of the economic, political and social risk of running a business in a foreign country. The country risk assessment helps to determine and monitor hidden risks in a country which also helps a business to properly develop strategies based on the known risk of he country.