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BRIC - Country Risk - Capital Budgeting

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For the capital budgeting process how would you take country risk into consideration to justify FDI?

I have gathered risk information for BRIC countries consumer product information but I do not have company in mind. Based on my knowledge the capital budgeting process deals with NPV, Discounted Rates of Return... specific financial data.

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The solution discusses how would you take country risk into consideration to justify FDI.

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Country risk has a major impact on foreign direct investment and capital budgeting decisions in international investments by a company. It is often seen that while using Net present value or payback methods for evaluating capital ...

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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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