Question: The Turkish and Japanese economies face different challenges over the next decade. The assignment requires you to choose one of the countries and identify the key risks in terms of the economic, financial, political and social risks. The project should be no longer than 1,500 words.
1. Executive Summary
The report should start with an executive summary of no more than 300 words that identifies the key risks faced by investors in the countryand must have a clear conclusion as to which country's sovereign bonds the group would invest in and why.
2. GDP Growth
Students should analyse the country's growth potential in terms of the formula for GDP.
Y = C+I+G+(X-M)
Students should obtain historical data,where available, and make projections for each constituent. The focus should be onareas such as the ability to grow domestic consumption; attract domestic / foreign investment; government spending (on infrastructure, healthcare and education), and each country's ability to fund these activities through taxes.
The net trade balance
Students should obtain a 10 year history of the country's balance of trade and present it in a table or graph, with currency movements over the period. Identify the key exports and key imports of the country and discuss the outlook for these key industries. Explain any large swings (typical causes are currency movements and/or product prices) and the consequences of a persistent trade deficit or surplus.
Important details
• You should submit your coursework electronically using the coursework submission system.
• You should present your models in a helpful and clear way.
• Students should ensure that their reports use the most current data available and refer to recent news items as they relate to the assignment. Students will also receive credit for the use of relevant data, presented graphically or in tables
• If you have any questions related to the coursework, please contact Charlie Dove-Edwin to set up a meeting in office hours.