International Finance

The three companies that will be evaluated for purchase are LG, Sony and Xiaomi. Some of the report will discuss the individual companies, but a large portion of this report will go into discussing the country situations of these companies. They hail from South Korea, Japan and the People's Republic of China respectively. The differences between these Northeast Asian countries can be significant, and it is these differences that should capture the attention of the executive evaluating the decisions. There are two elements of risk that are the most important in this report -- political risk and financial risk. The former reflects the risk that the value of the investment could change based on changes in the political environment in the target country (Investopedia, 2014). Any evaluation of a major purchase overseas will include political risk as a factor, so when the political risk changes, that should increase...
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