Country Risk

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 country and 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.

You should obtain historical data, where available, and make projections for each constituent. The focus should be on areas 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.