Country Risk Analysis|
Prepared for : ADk|
ID# 1010110 030
ID# 1010110 030
I would like to take this opportunity to thank my honorable faculty Mr. Abdur Rob Khan for assigning us with a project as this country risk analysis. The process of compiling all the data and analyzing each attribute using international standard data taught us a great deal about how each individual country’s risks are analyzed in real world terms. Also, I would like to thank him for his constant guidance and support throughout the whole process of finishing this extensive research analysis.
The entire report was based on secondary data compiled from information sources and pre-done researches such as The World Bank’s Data and Transparency International’s compiled research findings. The data collected from these sources were then used under the ICRG Rating system methodology to assess the risk of the country Chile.
The core limitation of this paper was its entire reliance on secondary available data. It became so that a few of the relevant data weren’t available or up-to-date per requirement so assumptions and approximate values had to be used quite often which undermine the strength of the ratings.
Table of Contents
The Political Risk Components:
Military in Politics
Law and Order
Rating of Poitical Risk Components
The Economic Risk Rating
GDP per Head
Real GDP Growth
Annual Inflation Rate
Budget Balance as a Percentage of GDP
Current Account as a Percentage of GDP
Rating of Economic Risk Components
Financial Risk Rating
Foreign Debt as a Percentage of GDP
Foreign Debt Service as a Percentage of Exports of Goods and Services Current Account as a Percentage of Exports of Goods and Service Net International Liquidity as Months of Import Cover
Exchange Rate Stability
Rating of Financial Risk Components
The Composite Risk Rating
The Risk Forecasts
Republic of Chile is a country situated in the southwestern tip of South America, between the Andes Mountains in the east and the Pacific Ocean in the west. Chile spans three continents and its territory includes part of the Americas, Oceania and Antarctica. It has its primary territory on the South American continent, between parallels 17º 30' S and 56º 30' S. Its length is 4,329 km from north to south, making Chile the longest country in the world. At the same time, is one of the narrowest, with an average width of only 180 km (445 km in the widest part, with only 90 km in the narrowest). Chile has a total area of 756,096 km2, and also claims a territory of about 1,250,000 km2 in Antarctica. The capital of Chile is Santiago, and the official currency is the Peso. Background
Prior to the arrival of the Spanish in the 16th century, the Inca ruled northern Chile while the indigenous Mapuche inhabited central and southern Chile. Although Chile declared its independence in 1810, decisive victory over the Spanish was not achieved until 1818. In the War of the Pacific (1879-83), Chile defeated Peru and Bolivia and won its present northern regions. It was not until the 1880s that the Mapuche Indians were brought under central government control. After a series of elected governments, the three-year-old Marxist government of Salvador ALLENDE was overthrown in 1973 by a military coup led by Augusto PINOCHET, who ruled until a freely elected president was inaugurated in 1990. Sound economic policies,...