1.

Introduction
An increasing number of companies are taking advantage of the external trade, which
represents huge business opportunities as much as the possibility of buying products and,
mainly, the development of new profitable and promising markets. The financial institutions,
while financing the commercial flow among nations, are trying and taking advantages of such
opportunities as well. On the other hand, out of the commercial extent, new business
opportunities are realized to those ones who are interested on investing extra values abroad
through direct investments or through the stock and security markets (public and private). So,
all of them, investors, banks, and companies are trying to improve their asset returns, taking
advantage of the amazing international liquidity opportunities, brought by the process of
globalization. However, to some countries, such opportunities do not only mean increasing of
the investment return. They also represent additional risks from the volatility intensification
of returns of each implemented business decision. Therefore, country risk analysis is getting
importance day by day. In this report we have analyzed the country risk of Bangladesh.

1.1. Origin of the Report:

The BBA program under the Department of Business Administration offers a course named
International Financial Management (FIN-465) which requires every group to submit a
report based on consumer behavior and marketing strategies which is determined by the
course instructor. We are assigned to prepare the term paper by our honorable course
instructor Md. Shehub Bin Hasan. The report has been prepared to serve that purpose.

1.2. Objectives of the Study:

The main objective of this report is to fulfill the mandatory requirement for the international
financial management course. But there are other objectives of this report. Those are:
To analyze the overall country risk of Bangladesh
To find out whether the country is suitable or not
To find out ways to reduce the country risk
These are the core objectives of this report. And in this report we will go through each of the
objectives mentioned above.

1.3. Methodology of the Study:

This report includes quantitative and qualitative data relating to our topic. Mainly secondary
data is used to complete the report. Information was collected primarily from various
websites. We also took help from our text book to depict theoretical matter. To analyze
country risk we have used checklist approach. Checklist approach involves making judgment
based on every one of the political and financial factors that contribute to a firms assessment
of country risk. It engages in rating and weighting all the identified factors, and then
consolidating the rates and weights to produce an overall assessment.
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1.4. Limitations and Delimitations:

1.4.1.

Limitations:

The limitation of the study is defined by the expensiveness of the facts covered by the study
and those that left out. It is observable that almost all studies have some boundaries. During
performing my work, we had to face a number of limitations. These are as follows:

Privacy of Information: Information needed for country risk analysis was very hard
to collect because this information is not open for public. This is one of the major
limitations of the study.
Financial Limitations: Prepare a proper report is not possible in a very limited
amount of money. Because, a huge amount of data and face to face contact with the
people related to this sector was needed. But, we did not have that much fund to
collect information from a various range of sources.
Time Limitations: We have been given a very limited time. Within this time it is
impossible to prepare a proper study report. It was not possible for us to conduct
proper interview with all the people, from whom we might collect proper information.
Data Collection: We cannot get accurate result by assuming something. This report is
mainly based on assumption. So, the data in not totally much reliable.

1.4.2.

Delimitations:

Instead of the limitations, we have tried our best to make the report as much relevant and
reliable as possible. Thats why we have also collected data from different government
websites and conducted proper analyses to prepare this report in a well manner.

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2. Country Overview:
Bangladesh
2.1. Financial Risk Factor:
Bangladesh is a developing economy supported by the agricultural sector. Over the years, the
economy has developed strongly in the industrial sector, especially in readymade garments.
This garment industry has now become a significant contributor to the GDP of the country.
Moreover, Bangladesh has also seen growth in industries involved in mining and quarrying of
natural gas.
Major challenges like higher population, along with frequent natural calamities are
influencing the overall development of the economy. Following sub-factors affect the
countries overall financial risk.

2.1.1.

Economic Growth:

Economy plays a vital role in the development of a country. It also plays a very important
role in the risk for foreign investment. The following factors are related to the overall
economic growth of a country.
A. Gross Domestic Product (GDP):
This is the total production of a country over the year. We can see a cyclical pattern in the
growth of GDP of Bangladesh over the last 10 years. Still, the growth rate is better relative to
other countries. The GDP growth rate of Bangladesh over last 5 years is given below:

Figure 1: GDP growth rate of Bangladesh over last 10 years

B. Gross National Income (GNI):

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If we look at the growth rate of the gross national income of Bangladesh over last 10 years
then we can see there is a sudden drop in last three years. So, this is a matter of risk for the
country. Because their national income is in a decreasing trend, it may hamper the economy
in near future. The GNI of Bangladesh over last ten years is given below:

Figure 2 GNI of Bangladesh over last 10 years

2.1.2.

Inflation Rate

Inflation rate is another important factor while determining the country risk of a country.
From the last ten years inflation rate data we can see, the inflation of this country is in an
increasing trend from last couple of years. This is very alarming for the country and it will
increase the risk further. Inflation rate data over last ten years is given below:

Figure 3 Inflation rate of Bangladesh over last ten years

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2.1.3.

Foreign Direct Investment (FDI)

If we look at the inflows of the foreign direct investments for last five years, then we can see
increase in the FDI in recent year. It means the rising inflation rate couldnt affect the FDI,
which is a good sign for the country. Foreign direct investment over last five years is given in
the figure below:

Figure 4 Foreign Direct Investment in Bangladesh over last5 years

2.1.4.

Interest Rate

From the table below we can see in case of deposit, the interest rate is following a trend
which is upward sloping from last few years. But, in case of lending, the interest rate
fluctuates too much. This is very confusing for the investors to make their investment
decisions. So, this is also risky and will affect the country risk.

Year

Central bank interest rates (%)

On lending

On deposits

2012
2011
2010
2009
2008
2007
2006
2005

9.40
11.16
8.06
4.39
10.24
7.37
11.11
9.57

7.46
6.08
6.29
7.09
6.84
6.99
5.90

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2004
2003
2002

2.1.5.

5.74
8.17
9.56

5.56
6.25
6.49

Official Exchange Rate

In 2012, the exchange rate increased by a large amount. It creates uncertainty in the
investment decisions of foreign investors. But, from the 6 years data we can see, the overall
exchange rate doesnt fluctuates that much. But, continuous depreciation of the currency over
last will have a negative impact on the country and will increase the country risk.
Official exchange rates during 2006-2012
Year

USD

EUR

GBP

2012

81.32

106.48

130.90

2011

71.04

94.92

112.02

2010

69.18

96.24

109.42

2009

68.80

94.52

111.17

2008

68.60

100.96

137.48

2007

69.03

90.17

133.44

2006

67.08

81.74

119.41

2.2. Political Risk Factor:

Bangladesh has a parliamentary form of Government; functioning on the basis of its self
drafted constitution. The powers of the Government are divided into executive, legislative
and judiciary.
The executive powers of the country lie with the President, elected by members of the
Parliament (the House of Nation). He is assisted by a Cabinet that is headed by the Prime
Minister. The Cabinet also exercises the executive powers under the supervision and control
of the President. The Cabinet also stands responsible to the House of Nation.
The House of Nation has the legislative powers of the country. It comprises of 300 members,
elected by way of direct election and an additional 45 female members are elected by the
existing members.

A.

Regulatory Environment

Bangladesh is ranked 130th in the 2011 Index of Economic Freedom. Its economic freedom
score is 53.0 (out of 100), an increase of 1.9 points from the previous year. The rise in
ranking was due to higher business and investment freedom.
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B.

Corruption Perception

Bangladesh is ranked 134th in the Worlds Corruption Perceptions Index 2010. Its index score
is 2.4 (out of 10), reflecting high levels of corruption.
C.

Freedom of Information

The country is ranked 126th on the Press Freedom Index 2010. It indicates that
the government laid high restrictions on the press.
There are around 40 daily newspapers in Bangladesh. The majority of them are published in
Bengali and English.
D.

Income Tax Rate

The Government of Bangladesh levies a minimum tax of BDT 2,000 on all individual
taxpayers. However, income tax is further charged on the basis of five income slabs varying
from 10% to 25%. Any non-resident person, other than Non-Resident Bangladeshi, is liable
to pay fixed tax at 25% of his/her income.

Income tax rate for individual taxpayers

E.

Income slabs (BDT)

Tax rate (%)

0-165,000*

165,001-440,000**
440,001-765,000
765,001-1,140,000

10
15
20

1,140,001 and above

25

Corporate Tax Rates:

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In the following table, the corporate tax rates are given for Bangladesh. This is a crucial
factor for the MNCs. Because, they have to pay tax from their income so, if tax rate is higher,
then the risk will also be higher. Recently, government has increased tax rate in some sectors
so; it is not a good indication for the MNCs. Present corporate tax structure of Bangladesh is
given below:
Corporate Tax Rates
Type of company/business
Publicly traded companies (other than bank, insurance,
leasing and other financial institutions)
Non-publicly traded companies (other than bank,
insurance, leasing and other financial institutions)

Tax rate (%)

27.5
37.5

Bank, insurance, leasing and other financial institutions

45

Mobile phone operators

45

Dividend or profit withholding

15

Expatriates

25

F.

Labor Force

In 2009, Bangladesh had an economically active population (labour force) of 53.7 million.
Males constituted about 75% of the total labour force. During 2009, the Labour Force
Participation Rate (LFPR) was 59.3% in the country.

3. Analysis of the Country Risk

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In this chapter, we have done our actual analysis on the country risk. In the below sections,
the country risk of Bangladesh has been analyzed. We can have a look on the overall risk
condition of the country from the figure below:

Figure 5 Country Risk of Bangladesh in Different Sectors

From the figure above we can have a look on the risk factor and impact of those factors in the
overall country risk. Surely, it will give some idea about the paper work that has done below.
The justification of the given weights to the different factors and the overall risk calculation
or Bangladesh is given in the next segment.

3.1. Political Factors:

Political situation in a country plays a vital role in the decision making of the MNC for
entering in that countries market. If the political condition is not suitable for them then they
dont enter that country. MNCs always seek for countries from where they can earn profits
and bring money back into the home country of the MNC. After analyzing the situation in
Bangladesh, we have given 40% risk weight in the political factor of Bangladesh. Political
conditions have less impact on the business of MNCs relative to the financial factors; as
financial condition of this country is very volatile presently; but have some impact. This is
the reason behind the 40% risk weight given to the political situation of Bangladesh.
Different sectors of political risk have been discussed below:

3.1.1.

Political Instability:

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Political instability is always a big risk for the investors to do business in any country. If the
political situation of that country is not stable then they have to face many hazels. Even for
the business MNCs political situation plays a vital role for doing business. MNCs try to avoid
countries with high level of political instability as they might not get considerable return from
their investment in that country.
This is one of the major political risk factor in Bangladesh. The present political situation is
so much risky that investors are in a great confusion about whether to invest in this country or
not. This political instability has increased the country risk.
Weight: Political instability is the most important political factor in Bangladesh.
Recent political situation is increasing the risk for investors to invest in this country.
Presently the situation is very much unstable. Distance between the government and
the opposition parties are increasing day by day. As a result, strikes, protests, rallies
have become a common and regular activity for them. These things affect the business
of MNCs or other investors because it affects the lifestyle and well being of life for
the general people. So, MNCs not only find it hard to do business but also lose
customers because of these activities of political parties.
For this reason, the highest weight in the political factor is given to the political
instability, which is 50%.
Rating: We have given a rating of 5 to this factor in positive rating scale (where, 5 is
high risk and 1 is low risk) because, it influences the political risk most. And for this
reason, political instability is a vital role player in the risk analysis of Bangladesh. So,
giving 5 in the rating scale to this factor is reasonable and justified.

3.1.2.

Corruption:

This is also an important factor for Bangladesh. To do business in this country, entities,
specially the MNCs have to pay a large amount of bribe. As this is also a positive side for
them, but yet very much risky because, government of this country changes very frequently.
Not only have the political parties setting up the government, but also a frequent shuffle in
position occurred within a single tenure of a government. This is a major risk, as the authority
changes in a corrupted country.
Weight: Corruption doesnt have as much impact as political instability in the
political factor. In some cases corruption is good for the MNCs and in some cases this
is very bad for them. Like: in different sectors they can reduce the costs by giving
bribe to get any work done. Though it is illegal but still this is happening regularly
and became a tradition for the MNCs doing business in this country. On the other
hand corruption may hamper the performance of the MNCs. For example, if the
government changes then it become hard for them to run the business if they done
anything by giving bribe. Their business may become obsolete in the country.
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As the advantage may be covered by the risk of changing government authority still,
the risk is lower than the unstable political condition. So, its weight is also lower. We
have given 25% weight to this after analysis its impact on the overall risk on the
country.
Rating: There are both advantages and disadvantages of corruption especially for the
corporations doing business in this country. But the disadvantage is slightly higher
because, if government changes then the corporations have to reallocate everything.
So considering this thing, we have given a risk rating of 4 to this fact. We think this
rating is justified in the context of Bangladesh.

3.1.3.

Attitude of the Customers:

Attitude of the customers towards the products an MNC offers, is also an important factor
while calculating the overall risk for an MNC for going in a particular market. If the people
of the country are not adaptive to new products then it will create a huge problem for the
MNCs. So, this is mandatory for the MNCs to analyze the choice and interest of the people of
a country before entering to that country for doing business.
In case of Bangladesh, the people of this country like foreign products. This is a huge
advantage for the MNCs to do business in this country. As, people of this country accept
foreign products from their own, so MNCs have less risk in this factor as the market
condition of customers in this country is very much suitable for MNCs. There are still some
risks associated for the MNCs about the attitude of the customers. That is, the awareness of
people of this country about their own country products as well as the GDP of the country,
especially in the garment sector. But case of the consumer goods, there is a possibility of the
same risk that may arise. So, the attitude of the people of the country towards the MNCs is
not totally risk free.
Weight: After analyzing the condition of the country about the customers attitude
towards the MNCs we have found that, people of the country adapt foreign products
very easily and people are very friendly to the MNCs products. Instead of this
advantage, there are also some risks associated with this that is the awareness of the
people of this country about their own products. It increases the risk of the MNCs for
doing business in this country. And this risk cannot be overlooked otherwise; the
MNCs may find themselves in big trouble in near future.
Considering this situation that is the attitude of the customers towards the foreign
products we have given 17% weight in this factor and we think that this weight is
very much justified with the condition of Bangladesh.
Rating: This factor has a large impact on the value of an MNC if any change occurs
as any change in the attitude may reduce the profit of an MNC in a large amount. So,
we can give lower weight to this factor but the rating should be a bit higher according
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to its impact on the value of an MNC. For this reason we have given a rating of 3 to
this factor.

3.1.4.

Attitude of Host Government:

Attitude of the home government is another important factor while considering the overall
country risk of a country. For example: in the communist countries the government does not
allow MNCs. And even if they allow them, MNCs find it very difficult to run business there
because governments do not co-operate with them. So, if the situation is like that then the
problem will be higher and the return will be lower. On the other hand, if the foreign country
government co-operate with the MNCs then they find it easier to do business in that country
and the return turns higher for them.
In Bangladesh, the government is very much flexible with the foreign companies.
Government of this country always tries to attract FDIs towards this country. The risk here is
that they are increase the corporate tax or can impose barriers for imports or can restrict the
transfer of money to their home countries. This is the risk associated with this factor to be
considered while deciding to do business in this country.
Weight: As the government of this country is flexible with the business of the MNCs
so the risk is also lower in this factor. As the risk is very low here, so the weight we
are giving is also lower.
We are giving only 8% weight to this factor while considering the country risk of
Bangladesh after analyzing the situation from the context of Bangladesh. We think the
weight we have given to this factor is justified.
Rating: Attitude of the government in Bangladesh is favorable for the MNCs as they
dont go for any activities against the MNCs in near past. So the risk related to this
factor is also lower. As, attitude does not change rapidly so, its impact on the value of
MNC is also lower. That is why we have given a rating of 3 to this factor.

3.2. Financial Factors:

Financial factors are very much crucial for the MNCs while doing business. These factors are
directly related to the performance of the MNCs. Changes occurred in any of the financial
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factor will directly affect the overall value of an MNC. That is why MNCs are more
concerned about the financial factors of a country such as, exchange rate, inflation rate,
interest rate, and industrial competition.
Financial factors in this country for the MNCs are very much volatile. Especially the inflation
rate of this country is rising over the last few years and the rate increases very frequently. As
a result of that, the exchange rate is also changing frequently. It also places an impact on the
interest rate of the country. Industry competition is the most common factor in every country
an MNC goes. According to the present condition of Bangladesh 60% weight is given to the
financial factors.
These financial factors in context of Bangladesh described below.

3.2.1.

Interest Rate:

Interest rate has a direct impact on the exchange rate of a country. So, this is very important
for the MNCs to analyze the movement of the interest rates before entering the market of any
country. If interest rate changes very frequently then the risk increases for the MNCs, but also
creates an opportunity for them to increase the return. If the interest rate is kind of stable then
the return will be lower but the risk associated with interest rate will also be lower.
In Bangladesh, if we see the movements of interest rates over last few years then we can see,
it varies within a certain level. It did not vary too much within last few years. So as per the
interest rate risk, the risk for the MNCs is lower than the other financial factors.
Weight: After analyzing the condition of Bangladesh, and measuring the movements
in the interest rate over last few years we have we can see, the interest rate is still
suitable for the MNCs to do business in this country.
For this reason we have given 20% weight to this factor. In context of this country,
we think this weight is very much suitable compared to the overall risk of the
financial factor.
Rating: Interest rate has a big impact on the value of an MNC. Simple change in the
interest rate can create a big difference. For this reason, though the interest rate risk is
comparatively lower in this country but still we are giving a ration of 4 to this factor
to make the calculation more reliable.

3.2.2.

Inflation Rate:

As we know, increase in the inflation rate creates a downward pressure of the exchange rate
of the home currency in any country. From this, we can understand how important the
inflation rate is, especially in the country with volatile economy. So, proper analysis of the

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inflation rate before entering the market of a foreign country is very much essential for any
MNC.
If we consider the inflation rate of Bangladesh then we can see, the inflation is in an
increasing trend over last few years. This is very dangerous for the economy of this country
as well as the entities doing business here.
Weight: If we consider the present trend of the inflation rate in Bangladesh; which is
growing frequently; then we have to give the highest weight in this factor while
calculating the country risk of the country. So we have given the highest weight to this
factor.
The weight we have given to this factor is 30% that we think justified enough for the
country risk calculation.
Rating: We have also given the inflation rate a ranking of 5. As we have seen earlier
about the impact of the inflation rate on the value of MNC and the present inflation
trend in Bangladesh, this rating is natural.

3.2.3.

Exchange Rate:

Exchange rate is another vital financial factor in the country risk analysis of a country.
Exchange rate directly affects the return of the MNCs if they want to take the profit to the
home country. But if they want to reinvest the return in the foreign country then it will not
affect that much in the return of the MNCs. But in most of the cases, we can see MNCs want
return according to their home currencies. In this case, exchange rate movements have a large
impact on the operations of an MNC.
If we consider the situation of Bangladesh, then we can see there has been a huge jump in the
exchange rate in recent years. The worst thing is, the currency is depreciating continuously so
the exchange rate risk is high in Bangladesh.
Weight: As the exchange rate risk is very high in Bangladesh, thats why the highest
weight is given to exchange rate with the inflation rate. MNCs must consider this risk
before entering in the market of Bangladesh.
In this situation we have given the exchange rate movement 30% weight in the
financial risk factor of Bangladesh.
Rating: The exchange rate movement in Bangladesh has given a rating of 5 because
of its recent big fluctuations. This rating will make the calculation of country risk
more valuable.

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3.2.4.

Industry Competition:

Industry competition is very common in each and every country for any company, whether
that is a domestic or an MNC. So, industry competition is another important factor for
calculating the country risk of any country.
In Bangladesh, this competition risk is lower for well known MNCs as the people of the
country will accept the product even the competition is very high in every industry of this
country. But for the average rated MNCs the risk is a little bit higher because they need to
build up confidence about their products in the mind of the people in this country. In an
average the risk associated with the industry competition in this country is average.
Weight: As the risk associated with this factor is average compared to the other risk
factors. And considering the adaptability of the people of this country about foreign
products an average weight has been given to this factor.
The weight we have given to this factor is 20% and it is justified because, some
MNCs get advantages and some face disadvantages. Overall condition is average in
the context of Bangladesh.
Rating: Industry competition gets a rating of 4 because of its comparative impact on
the overall risk of a country.

3.3. Calculating the Country Risk:

Now we are about to calculate the country risk of Bangladesh for foreign investments. We
have divided the total calculation in 3 steps. The first step is, calculating the political risk and
its total rating. The second step is calculating the financial risk and its total rating. And the
final step is calculating the country risk using the calculated total rating from the step one and
step two.
The country risk calculation is given in the segment below:

3.3.1.

Calculation of Political Risk:

The political risk of Bangladesh is calculated below using the weights and ratings described
above.

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(1)
Political Risk
Factors

(2)
Rating Assigned to
Factor (within a
range of 1-5)

(3)
Weight Assigned to
Factor According to
Importance

(4) = (2)*(3)
Weighted Value of
Factor

Political Instability

50%

2.5

Corruption

25%

Attitude of the
Customers

17%

.51

Attitude of the
Government

8%

.24

100%

4.25

Total Political
Rating

From the table we can see the total weighted value of political risk is 4.42 for Bangladesh.

3.3.2.

Calculation of Financial Risk:

The financial risk of Bangladesh is calculated below using the weights and ratings described
above.
(1)
Political Risk
Factors

(2)
Rating Assigned to
Factor (within a
range of 1-5)

(3)
Weight Assigned to
Factor According to
Importance

(4) = (2)*(3)
Weighted Value of
Factor

Interest Rate

20%

.80

Inflation Rate

30%

1.50

Exchange Rate

30%

1.50

Industry
Competition

20%

.80

100%

4.60

Total Political
Rating

From the table we can see the total weighted value of financial risk is 4.66 for Bangladesh.

3.3.3.

Country Risk:

The country risk is calculated below with the calculated ratings above and the weights of the
political and financial factors.
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(1)
Category

(2)
Rating as
Determined Above

(3)
Weight Assigned to
Each Category

(4) = (2)*(3)
Weighted Rating

Political Risk

4.25

40%

1.70

Financial Risk

4.60

60%

2.76

100%

4.46

Overall Country
Risk Rating

So, the overall country is of Bangladesh is 4.46

4. Findings and
Recommendations
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In this chapter, we have discussed about our findings from this report and some
recommendations for the MNCs for doing business in this country.

4.1. Findings:
While analyzing the risk of the country for the business of MNCs, we have found the
following things related to this topic.
Financial factors of this country are volatile, especially in the recent years there has
been a frequent changes in different financial factors of the country.
Recent political condition is not that much good for the country. This is getting riskier
for the companies to do business here.
Very recent incidents in different industries have increased the awareness about the
labor right. So, there might be new rules about labor control imposed by the
government very soon.
Markets in this country are also very much competitive. It increases the risk for
MNCs to do business in this country.
Lack of regulations about the fact of copyright exists in this country. So, MNCs
unique products can be copied easily by the local companies.
In the macro level, the risk for MNCs is higher in this country for any kind of
business.
In micro level the risk is slidely lower because, micro level factors of this country
could not affect a MNCs value that much.
The overall country risk is very high in this country for doing business for MNCs.
After the analysis we can see that, as for the present situation of this country, the country risk
is very much high for the MNCs to invest in this country. There have been a lot of emerging
domestic companies in recent years. It increases the competition for the MNCs. And the
domestic companies get the support from the government. This is a huge disadvantage for the
MNCs. So, from our analysis, we can say that Bangladesh is presently riskier for the MNCs
to conduct business.

4.2. Recommendations:
We also have some recommendations for the MNCs who want to do business in this country
or who are doing business presently in this country.
Bangladesh is a bit riskier for the MNCs who want to start business in this country,
especially for foreign direct investments. But, this risk may be minimized within a
couple of years; it is wise for the MNCs to wait till then.
For the MNCs who are already doing business here doesnt need to put up the
shutters, because this condition of the country, especially the political condition is not
long term and not new for this country.

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 If a MNC has already decided to do business in this country, then it will be wiser
decision from them to invest less at this moment.
Interest rate movements are riskier for the individual investors but the exchange rate
movements are suitable for speculation.
Proper and regular update is very much essential for the MNCs about the country risk
of this country because the situation is changing in a regular basis.
These are some recommendations about the country risk for the MNCs and individual
investors who want to do business in Bangladesh. It will be better for them if they follow
these suggestions and periodically review the risk and update this information. Then, business
in this country will be easier for them in this country, if they can match with the pattern of
condition changes in this country.

4.3. Conclusion:
Country risk analysis is essential for the international investors to do business in any country.
If investors invest funds without having proper risk analysis of that country then the chance
of default is higher and a large portion of their funds may be lost. So, before doing business
in any country, this is very much important to do proper country analysis. It will definitely
reduce the default risk of invested fund and increase the profitability. The country risks
analysis helps to identify the country where investment is suitable and most profitable. By
doing this sort of analysis MNCs can increase their profit and also expand their businesses in
a country where the potential of the profit is most. So, it is better for the MNCs to do proper
country risk analysis before entering to any country for doing business.

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