Ukraine - Country Risk Assessment
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This paper begins by presenting various models for assessing the challenges faced when investing in a foreign country. These models discuss political, exchange rate, economic, sovereign and transfer risks among others. Using a hybrid of the models presented, the paper then analyzes the status of the emergent economy of Ukraine.
Ukraine - Country Risk
Ukraine - Country Risk
From the Paper:"With the capital at Kiev, Ukraine is the 36th largest economy of the globe in terms of measured gross domestic product, with the GDP per 2008 of an estimated $337,000 million. The economy is growing at an annual rate of 2.1 percent and the GDP per capita is of $6,900, in a context in which the global average is of $10,000. This means that the foreign investor would be able to benefit from Ukraine's comparative advantage of cost-efficient labor force. The unemployment rate is of 3 percent and the country's national debt represents 10 percent of their GDP (comparatively, U.S.'s national debt is of 60.8 percent of the country's GDP). All these figures point out to a relatively stable economic and political climate, but the 25 percent inflation rate does raise some questions (Central Intelligence Agency, 2009).
"The Amnesty International's interest in the eastern European country has been focused on an analysis of human rights. The institution found several breaches in human rights policies and strives to increase awareness of these problems. In a clearer formulation, Amnesty International found that Ukraine does not respect the international law in human rights of hosting refugees and allowing them to become settled in other countries, but that the state's officials send these refugees back to their original countries, where many of them stand to suffer torture or other breakings of human rights policies (Amnesty International, 2008). However statistics relating to country risk and human rights are scarce, the foreign investor must also consider these findings when making his decision. In this line of thoughts, Ukraine's country scoring is reduced to their inability to safeguard international human rights stipulations."
Sample of Sources Used:
- Yim, J., Mitchell, H., January 2005, Comparison of Country Risk Models: Hybrid Neutral Networks, Logit Models, Discriminant Analysis and Cluster Techniques, Expert Systems with Applications, Vol. 28, Issue 1
- 2001, A New Database on Foreign Direct Investment, World Bank, http://www1.worldbank.org/economicpolicy/globalization/data.html last accessed on April 11, 2009
- June 5, 2008, Ukraine: No Safe Haven for Refugees, Amnesty International, http://www.amnesty.org.au/news/comments/14132/ last accessed on April 11, 2009
- April 1, 2009, Country Profile - Ukraine, BBC News, http://news.bbc.co.uk/1/hi/world/europe/country_profiles/1102303.stm last accessed on April 11, 2009
- 2009, Country Risk, Investopedia, http://www.investopedia.com/terms/c/countryrisk.asp last accessed on April 11, 2009
Cite this Analytical Essay:
Ukraine - Country Risk Assessment (2011, August 23) Retrieved July 06, 2022, from https://www.academon.com/analytical-essay/ukraine-country-risk-assessment-148006/
"Ukraine - Country Risk Assessment" 23 August 2011. Web. 06 July. 2022. <https://www.academon.com/analytical-essay/ukraine-country-risk-assessment-148006/>