A manager at honda a non-us company is analyzing the, Ask an Expert

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A manager at Honda (a non-US company) is analyzing the country risk of setting up a subsidiary in Ohio. Honda’s criterion is it will consider a country as long as the country risk rating is 4 or above. Honda weights political risk and financial risk equally (50% each). Other numbers needed for the analysis follow. The manager does NOT want to do business in Ohio. What is the overall country risk rating? What can the manager do?

Country Assigned

Rating weight

Political risk rating

Corruption 4 90%

Bureaucracy 4 10%

Financial risk rating

Exchange rate 5 100%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92378213

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