Country Attractiveness and Risk Assessment
Greece Economic Crisis
The first thing to know about Greece is that at the moment they are in an economic crisis, this crisis was originated by years of uncontrolled spending, low interest lending credits, and failure to implement correct financial reforms in the last decade. The biggest problem is that as part of the European nations, Greece has exceeded the permissible levels of deficit and debt set in their international agreements. This is the main reason why many nations in the EU (European Union) were questioning the participation of Greece, therefore elevating its political risk.
The political risk is a very important Economic factor that affects the imports and exports of a nation worldwide. The political risk is just a value that is granted by the perception of the market to see the overall risk of a country compared to other ones. The main reason this factor affects the exports and imports in a country is because the score used to determine the political risk of a country, is also the percentage of interest extra to the normal conditions most of the companies, or even governments, give the importers or exporters of that country as a form of commercial loans for international business.
The main concern of the EU is that if they let Greece keep up with their way of running their deficit and external debt it is going to affect the reputation of the EU and the way the worlds see the European Union, therefore affecting their stability of their common currency and power of negotiation as an international organism.
Political stability risk
The political risk of Greece at the moment is of 1.282 that means that they get 1.28% in every single loan they make for international transactions extra the normal interest rate. As part of the EU the main problem of their political career is that they cannot make decisions based on their will but they have to accomplish and do what the international...