A Country 's Political And Financial Risk

1201 Words Feb 2nd, 2016 5 Pages
Country risk refers to the economical, political and risks that are unique to a country, and that might result in losses which are quite unexpected.

CHAPTER OBJECTIVES

1. To identify the common techniques used by Tesla to measure a country’s political and financial risk while launching Tesla’s new section of motorcycles.

2. To explain the methods used to measure country risk.

3. To explain how the measurement of country’s risk is used by TESLA when deriving and validating the financial decisions for its new motorcycles.

4. Country shows the potential impact of a country’s impact on the tesla motor’s cash flow.

PESTEL RISK ANALYSIS

Political risk: This risk is the risk to the political arguments and policies made within a country that might turn out to be an loss to the company. While economic risk is said to be a country 's ability to reimburse its dues. Even if a country 's economy is strong, if the political climate is unstable or unreliable to outside investors, the country where the investment is taking place may not be a good place for investment.
Political factors go hand in hand with national administration a political parties altogether. International bodies such as European union and World trade organizations. In order to influence industrial sector, United states government promotes motor vehicles under the Regulation of EC No. 1475/95 and furthermore helps the research ideas of motor bikes manufacturers by sixth framework Program (2002-2006).…
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