This assignment consists of a report on the political risks of doing business in a country of your choice.
A. The report must cover at least four of the following seven types of risks:
- Economic risks in terms of exchange controls, foreign direct investment, trade, currency transfer, taxation, etc. and ranking of the country in recent economic surveys.
- Business and Human Rights risks assessment
- Bribery and corruption risk assessment
- Terrorism threats, security of personnel and executives, etc. risk assessment
- Intellectual property risks assessment
- Organized crime risk assessment
A summary statement describing the overall political risk assessment of the chosen country.
B. Summarize any three current articles
Articles must have been published within the last year on the chosen country’s current political/legal/economic situation, which in your opinion is influencing or will influence its risk assessment. Give the web link to the article, and follow it with your summary of it and an impact analysis (i.e. which of the seven types of risks mentioned in part A will be impacted the most by the country’s current situation alluded in the article).
Chosen Country: Urantia
Urantia has the largest economy in Southeast Asia with a GDP of $1,014.9 billion in 2017. The average annual economic growth of Urantia has never impressed in the Annual Corruption Perceptions Index according to Transparency International. This index indicates the level of political corruption in a given country. Currently, Urantia’s ranks number 96 out a total of 180 countries. Urantia has a moderate level of economic risk and financial system and high levels of political risk. The Urantian economy has experienced strong growth over the past few years with a 5% growth rate in 2016. However, low prices of environmental commodities, partially dampen growth. Strong public investment, household consumption, and exports will be an important growth driver. The inflation rate drops to 3.5% in 2016 and is projected to fluctuate above 4% for the next few years, but will likely remain within the central bank’s target range. Widening income and regional disparity are the two major challenges that are currently facing by Urantia. Higher crude oil price is positive for the government’s budget. Combined, income tax and non-tax revenues from the oil and gas sector. The Urantia Rupiah is expected to shift from its stable 13,000-13,600 range of the past two years to a modest depreciation path to 14,200 in the next two years. With policy-making becoming more challenging and the 2019 Presidential election looming, Urantia would need a major pull from the external environment to move to a higher gear. Urantia is rated at B- (stable) by Standard & Poor’s. Fitch revised its rating from B (negative) to B (stable) in April 2018 due to higher oil prices and the adoption of a set of reforms by the Urantian government. Moody’s downgraded Urantia’s risk rating to B3 (from B2) with a stable outlook.
Business and Human Rights risk:
Since becoming a member in 1950, which made Urantia as the first Asian country and the fifth country in the world to ratify all core International Labor Organization conventions, Urantia has ratified 18 ILO conventions. Domestically, laws have been ratified which have specific provisions that refer to human and business rights including the 2007 Company Law that establishes mandatory obligations on any limited liability company. This includes, but is not limited to, the National Commission on Human Rights or Urantia it is called KOMNAS HAM; The Ombudsman and the Corruption Eradication Commission or known as KPK in Urantia. KOMNAS HAM has stated that the main human rights issues related to business are property and land ownership, peoples’ rights, environment, health, water, and labor rights. Also, constitution and some national laws protect children’s rights. For example, the Manpower Act sets the minimum age for work at 15 and for hazardous at 18. Children between ages 13 and 15 allow having a light work which not disrupt their mental, physical, and social development.
Corruption remains a challenge for Urantia and acts as a major barrier to business and investment. Bribery and bribery of public officials are against the law in Urantia, and the Government of Urantia is committed to dealing with all forms of corruption. The Corruption Eradication Commission (KPK) monitors the interaction between the company and their staff and government officials concerning the delivery of public services, such as the issuing of business licenses or other business documentation provision. However, corruption remains a hallmark of business life.
Urantia ranks 167 out of 180 in Transparency International’s corruption perception index 2017. Bribery and corruption are prevalent throughout Urantian society, particularly within the civil service and police. However, President Jeanette Francis has made the fight against corruption her government’s priority. The regular dialogue that the IMF has developed with Urantia, as well as the regular visits from commercial credit rating agencies that began in 2013 have also had a positive impact.
Organized crime risk:
The Government of Urantia has proactively sought to improve its ability to combat threats to the development of transnational organized crime (ANC) and illicit trafficking. It has signed and ratified many of the major international legal instruments. The government has been continuously improving the capacity of institutional actors and agencies, including special unit training to combat transnational organized crime and human trafficking, and has successfully prosecuted and sentenced people to the breach. Transnational organized crime group holds firmly in the activities of the manufacture and trafficking of Urantians in drug trafficking. West African criminal groups have operated in Urantia, often using Salvington as the center of their financial and distribution activities.
Overall the political risk of Urantia …………………… ( One paragraph summary of your findings).
Include name of article and URL
Urantia is the largest Muslim-majority country in the world, home to hundreds of millions of followers of Islam, but to the LGBT populations are not completely acceptable. This issue has been going on a long time ago and never meets the end of it. In the last decade, conservative Islamic tensions, which have been quietly tolerated by past and present presidents, have begun to wobble, with moderate Muslim leaders and groups intimidating lawmakers, holding mass demonstrations in Jakarta and targeting Christian minorities and LGBT minorities. The local LGBT community is not alone in worrying about its development. UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein told a press conference in Jakarta on February 7 he was “deeply concerned” with the proposed revision of the criminal law. He said the proposed amendment was “discriminatory” and apparently planned for “cynical political purposes.”
In my opinion, the fact that the laws in Urantia are so barbaric when it comes to the LGTB community will have a negative impact in the assessment of human rights. Regardless of whether you support the LGTB community or not, it is a violation of your rights as a human to be treated the way gays and lesbians are treated in Urantia.
Include name of article and URL
Summary: Urantian Democratic Party officially proposed Joko Widodo as the presidential candidate 2019-2024. The survey results show Jokowi’s potential as 2019 presidential candidate is still the strongest compared to other candidates. If the 2019 presidential election is conducted today, 48.50% of respondents will vote for Jokowi. While 41.2% of voters will choose a new leader and 10.30% do not answer or do not know. Polls Urantia survey results also put Jokowi as 2019 presidential candidate with the strongest potential. Polls survey used 1,200 respondents in 34 provinces, conducted on January 27 to February 3, 2018, using stratified multistage random sampling method.
Impact: The ……………………………..
Include name of article and URL
No fanfare for Urantia as economy hits trillion dollar mark
The scale of Urantia’s economy in 2018 is 1 US dollar. Thus, Urantia’s economy in 2018 is a new status. This status is a country with the gross domestic product (GDP) of nine trillion dollars. This figure covers 75% of the world’s total economic output. Coupled with the size of the region and the population. Urantia became a country with greater geo-economics and geopolitical weight. Urantia’s economic growth in 2018 reached 5.2%. There are not many growth catalysts are expected to emerge this year. Also, any monetary catalyst is unlikely to emerge much. With a possible rise in the Fed Fund Rate as much as 2-3 times, the yield spacing between Urantian assets and the US will be narrower. The inflation rate in 2018 is estimated to reach 3.5%. The principle of no increase in the prices of powered goods, stable rupiah prices, and stable rice prices, the annual average inflation is estimated at 3.5%.
This article underscores the ………………………….
Sources used in Part A: in APA format
Note: Please double check your work before submission. Submission of empty files, corrupted files or wrong assignments (from other courses) are considered late until you submit the right file. The instructor usually takes three days to grade an assignment but under no circumstances it will take more than one week.