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You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate

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You are working for McDonalds Corporation. You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate a Franchise there.
Explain how you would proceed?
What data would you need; How would you use them?

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Solution Summary

The expert examines the countries risk assessment for Iran for the current year.

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Iran Country Risk Analysis
In order to conduct country risk analysis for Iran, its economic, social, political risk factors will be analyzed. In order to operate any franchise in foreign country, it is very important to conduct the analysis of these risks factors (Reuvid, 2006). It would determine the overall environment for the success of business in a specific country. At the same time, one would require data like mapping and assessing different risk factors, projecting future patterns and scenarios, assessing key impacts of different risk factors and strategic options for effective country risk analysis (Sha, 2007). This information would produce generic information regarding the operation of McDonald's franchise in Iran.

Being the second largest oil producer also the economic conditions of the Iran are not good. The underdeveloped banking system and more reliability on hydrocarbon products have significantly affected its economic environment (Intelligence Quarterly, 2010). The economic environment of Iran subsequently produces challenge for the investors to invest in Iran. In addition to this, political risk analysis is also important to conduct for the country risk analysis. Knowledge of political environment is very important from investment point of view as it governs the policy formulation in country. In Iran, the political ...

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