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Is country risk analysis an effective tool in determining the desirability of establishing a manufacturing site or other mode of entry?

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June 02, 2008 12:18PM

Yes indeed, a country risk analysis is an effective tool in determining the desirability of establishing a manufacturing site or other mode of entry.

It gives a good overview of the situation in a particular place. If the grade appears to be not so good, it is thus highly recommanded to go deeper into the assessment of the situation - at sectorial and local level.

I also recommend that you look at not only economic factor but also political, social and environmental factors.

The best country risk analysis displays a global assessment approach.

I advise you to look at a tool developped by EthiFinance : GlobalRiskRating

Global Risk Rating is an Internet website that enables you to rate the countries according to sustainable development criteria : environmental risk, social risk, political risk…

It gives you access to our database which includes reliable information on the countries, as far as environment and social conditions are concerned. Thanks to its scoring, analysing and graphic features, you can create and customize your personal assessment, according to your own criteria.

This tool covers more than a hundred countries and several dozens of indicators classified in 3 categories :

* Governance and Human Rights, * Socioeconomic development and human capital, * Natural resources and environment protection.

The whole data are issued from public and official sources (UN, UNDP, World Bank...).

Global Risk Rating is designed to answer companies' and investors' needs for risk assessment tools - more precisely for risk, purchasing, sustainable development and socially responsible investment departments. Click on "Website Demo" to get more information about G2R features.