Assignment 1: LASA 2—Country/Industry Risk Analysis

Assume that you work for a large multinational telecommunications corporation in the U.S. that is considering establishing operations in another country. Select one country as the basis for exploring the possibility of starting a joint venture in that country. You are assigned by your supervisor to conduct a full country risk analysis for this country and the telecommunications industry in that country. You are to present your findings to the Board of Directors in the form of a risk analysis report.

Your supervisor has asked for you to divide your report into the following areas for analysis:

Economic Risk
Political Risk
Business Environment Risk
Currency Risk
Recommendations for proceeding and suggestion of two additional financial analysis methods which could be used to further support the decision.

You are to conduct a country/industry risk report, identifying as many factors as possible in the categories listed above for the analysis.  Present your findings in a report of 10-12 pages.

In your report, you will make a recommendation to your supervisor as to whether or not the company should proceed with this venture.  Suggest two additional financial analysis methods which should be explored further in analyzing the feasibility of starting the global joint venture.  Explain your recommendations. The textbook suggests methods for doing a country analysis and there are several models that can be found on the Internet.