Should he consider other emerging nations, despite their risks? Provide arguments in your favour. Should he consider other foreign
Assignment Tasks and Objectives
You and your team are part of the Country Risk Assessment Division (CRAD) in the Fitch Ratings
agency. The CRAD provides business reports to private companies considering investing in
emerging nations. BlackGold Coal, an Australian based coal producer, is a medium sized private
company producing various grades of coals. BlackGold currently exports their coals to China but
their director – L J Calloway – approaches your division with his dilemma:
- Should he consider other emerging nations, despite their risks? Provide arguments in your
favour. - Should he consider other foreign investment strategies to enter these new emerging markets?
Provide arguments in your favour. - Calloway is aware of foreign exchange risk once he moves from the domestic to the
international market but does not really know what exchange rates are in operation in various
countries. Hence, he asks your team to evaluate at least two FX derivative strategies and
recommend the best FX management strategy to manage the unknown FX risks in those
countries.
Answer preview for Should he consider other emerging nations, despite their risks? Provide arguments in your favour. Should he consider other foreign
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