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Consulting Report - Peru

Consulting Report - Peru - Prof Reade 10:30 am matter...

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11/6/2008 Prof. Reade 10:30 am matter Consulting Report on Political Risk – Peru I have analyzed Peru, your most recent business venture, a computer and electronics store, and have found it to be a risky country to invest in. The country rating is a B, which is not terrible but not great. The type of political risk that is present in Peru includes a split country between the more modern areas and the indigenous subsistence cultures inland. This split leads to social and political unrest that poses a threat to our ability to run a stable business entity. Another threat is the banking system’s extensive dollarization which would prove to be unstable in the case of a crisis of confidence. i Of course in a B rated country we are running the risk of corruption both politically and socially. The last risk that occurs in investing in Peru is a dependence on world commodity prices which has impeded upon the development of the country.
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