Essay about Country Risk Analysis of Nigeria
This project focuses on existing problems, importance of efficient the country risk of Nigeria. In this regard we have identified their culture, people, economy, investment, opportunity, some key problems like Corruption, bureaucracy, piracy, Counterfeit, Criminal activities and fraud, legal safeguards etc. This paper also intends to show the regulatory framework issue, micro economic and macroeconomic issue to give a detailed picture of the Nigerian business Risk.
But there are also upside risks especially to inflation, which could create challenges for Nigeria given emerging constraints (infrastructure).
Nigeria is still today a prosperous country, and although they have had their downfalls, they have had many …show more content…
Importance of Country risk analysis
Now a day’s, global business era country risk analysis is mandatory for achieving success. We need to understand what risks are involved in a country before entering a particular country. * Risk is simply a matter of perception. Different people think about risks from different perspective. Risk can be defined as “the chance of commercial or personal loss”. * There are basically invisible risks in a country, which are the risks that we do not think about explicitly. * There has been recently growth of the study of the country risk analysis due to the globalization of business and the push for higher return by shareholders.
Subsequently if any foreign investor wants to start business in Nigeria, this is prerequisite to do a broad country risk analysis on the country Nigeria, which will help him to deal with Nigeria’s environment and ultimately which will direct him to achieve organizational goal.
Among so many risks, some invisible risk must be identified;
1. Corruption 2.Cultural Issues
3. Bureaucracy 4.Legal safeguards
5. Criminal activities and fraud 6.Unique cultural issue
7. Personal threats 8. Extremism
9. Precautionary measure