A treasurer's guide to country risk

Article Abstract:

Country risk analysis is an inexact science through which internationally operating firms try to gather and evaluate data to minimize business risk. Analysts have to cope with a wide array of interdependent variables. Both quantitative and qualitative assessments have their limitations in terms of understanding the intricacies of a large, heterogeneous group of countries and nationalities. A 'CAMEL' system is described which can be used to structure the variables that must be collected, evaluated, compared, and forecast in looking at the dangers and opportunities of doing business in a given country. CAMEL addresses: current earnings, asset quality, management quality, earnings potential, and liquidity. A seven-point general exposure management process known as IMPROVE is also described that covers: identification, measurement, projection, risk assessment, options review, valuation, and execution.

Author: Belcsak, Hans P.
Risk assessment, Risk management, Political risk

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Measuring the performance of foreign subsidiaries

Article Abstract:

Firms interested in competing in the global marketplace are increasingly motivated to acquire subsidiaries in overseas locations. However, companies need to make sure that they obtain the profit levels and world-wide market share they want. One way to evaluate results is to utilize an evaluation process which examines four specific elements: external macroeconomic/political factors; internal company-specific factors; external company-specific factors; and intercorporate factors. A measuring process is described to illustrate the application of the evaluation process.

Author: Stewart, Ireland J.
Performance, Subsidiary corporations, Subsidiaries

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The influence of subsidiary context and head office strategic management style on control of MNCs: The experience in Australia

Article Abstract:

Control issues linked to three major flows amongst multinational corporation subsidiaries are examined.

Author: Chung, Lai Hong, Gibbons, Patric T., Schoch, Herbert P.

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Subjects list: Analysis, Management, International aspects, International business enterprises, Multinational corporations
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