1. Reducing country risk. Explain some methods of reducing exposure to existing country risk, while maintaining the same amount of business within a particular country.

2. Managing country risk. Why do some subsidiaries maintain a low profile as to where their parents are located?

3. Country risk analysis. When Jerrik ApS (Danish) considered establishing a subsidiary in Zenland, it performed a country risk analysis to help make the decision. It first retrieved a country risk analysis per- formed about one year earlier, when it had planned to begin a major exporting business to Zenland firms. Then it updated the analysis by incorporating all current information on the key variables that were used in that analysis, such as Zenland's willingness to accept exports, its existing quotas and existing tariff laws. Is this country risk analysis adequate? Explain.