Propaganda Machine "The business of the journalists is to destroy the truth, to lie outright, to pervert, to vilify, to fawn at the feet of mammon, and to sell his country and his race for his daily bread" In America, John Swinton, then the pre-eminent New York journalist, was the guest of honour at a banquet given him by the leaders of his craft. Someone who knew neither the press nor Swinton offered a toast to the independent press. Swinton outraged his colleagues by replying, "There is no such thing, at this date of the world's history, in America, as an independent press.
In this section, we review in detail the methodologies used by two of the foremost providers of risk ratings: Institutional Investor averages these ratings, providing greater weights to respondents with greater worldwide exposure and more sophisticated country analysis systems.
Whenever a survey or expert panel is used to subjectively rate creditworthiness, it is hard to exactly define the parameters taken into account.
In order to identify the factors that its survey participants have taken into consideration in the past, Institutional Investor asks them to rank the factors that they take into account in preparing country ratings. The results of this survey are listed in Table 1.
Note that the bankers rank factors differently for different groups of countries and that rankings have changed over time within country groups.
The ranking of factors affecting OECD country ratings appear to have been the most turbulent over the fifteen-year period. Five financial, thirteen political and six economic factors are used.
Each factor is assigned a numerical rating within a specified range. The specified allowable range for each factor reflects the weight attributed to that factor. A higher score indicates lesser risk. Political risk assessment scores are based on subjective staff analysis of available information.
Economic risk assessment scores are based upon objective analysis of quantitative data and financial risk assessment scores are based upon analysis of a mix of quantitative and qualitative information.
Calculation of the three individual indices is simply a matter of summing up the point scores for each factor within each risk category. Note that the political risk measure points is given twice the weight of financial and economic risk 50 points each. ICRG, as well as many of the other providers, think of country risk as being composed of two primary components: Political risk is associated with a willingness to pay while financial and economic risk are associated with an ability to pay.
The specific formulas for these calculations are as follows: The specific factors taken into account for each risk index are detailed in Table 2. ICRG also groups country composite scores into ordinal risk categories to facilitate quick interpretation and comparison of country scores.
This categorization scheme is presented in Table 3. Although the factors taken into account by each group and the audience they seek to inform vary, there are significant similarities across the providers of these measures. Most of the providers transform widely used quantitative economic indicators in roughly the same manner.How Does Political Risk Affect International Business?
by Billie Nordmeyer - Updated September 26, Tarō Asō (麻生 太郎, Asō Tarō, born 20 September ) is a Japanese politician who is the Deputy Prime Minister and Minister of timberdesignmag.comō was the 59th Prime Minister of Japan, serving from September to September Asō has served in the House of Representatives since He was Minister for Foreign Affairs from to , and was Secretary-General of the Liberal.
These measures include political risk, economic risk and financial risk.
The ICRG also reports a measure of composite risk which is a simple function of the three base indices. The final measure we examine is Institutional Investor's country credit ratings. A Current Look at Japans Financial and Political Risk essaysA Current Look at Japans Financial and Political Risk A global company faces a number of different types of risks-economic, legal, political, and competitive.
The nature and severity of such risks are not the same for all countries. A glo. 28 Mins Ago *China data fuels fears of slowing global growth. One is the news yesterday on the potential easing in trade tension between U.S. and China and secondly the continued decline in oil.
Free essays & term papers - A Current Look at Japans Financial and Political Risk, Economics.