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Slovakia Country Analyses

In: Business and Management

Submitted By eva29
Words 9754
Pages 40
Slovakia country risk analysis

Seminar Paper
Submitted at
Lauder Business School, Vienna in Corporate Risk Management by David GRÜNFELD KRÁLIK
Eva PÓSA
Valentine TARELKO

* Submitted on: 26.04.2014
Table of contents
1. Introduction 5
2. Political Risk 6 2.1. Government stability 6 2.2. Corruption 7 2.3. Socioeconomic conditions 8 2.4. Internal and External Conflict 10 2.5. Investment Profile 11 2.6. Military in politics 14 2.7. Religious tensions 15 2.8. Law and Order 15 2.9. Democratic Accountability 15 2.10. Bureaucracy quality 16
3. Current Economic Situation in Slovakia 17 3.1. Slovakian Economic Outlook 18 3.2. Outlook Economic Risk Evaluation for the Slovak Republic, Eurozone and the EU 19 3.3. Components of the Economic Risk Analysis 20 3.3.1. GDP Growth Rate 20 3.3.2. Government Budget 21 3.3.3. Current Account to GDP 22 3.3.4. Inflation Rate 22
4. Financial Risk Assessment 24 4.1. Foreign Debt as a Percentage of GDP 24 4.2. Foreign Debt Service as a Percentage of Exports of Goods and Services 24 4.3. Current Account as a Percentage of Exports of Goods and Services 25 4.4. Foreign Debt as a Percentage of GDP 25 4.5. Exchange Rate Stability 26
5. Conclusion 27
6. List of references 28
7. Appendix 30

Methodology: Country risk is a composite concept that relates not only to political risk but also to financial and economic risk. Specifically, this paper aims to assess the impact of various components of political, economic and financial risks of undertaking a de facto foreign direct investment in Slovakia, using indices sourced from the International Country Risk Guide (ICRG) provided by the Political Risk Services (PRS) Group. For political risk, we examine the influences of government stability, socioeconomic conditions, investment profile, internal...

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