Country Risk Analysis - Report Example

Risk Analysis The process of analyzing and defining the dangers to business, the individuals and to the government agencies that are shown by capable human and natural caused extreme events. Reports that analyzes risks can either be qualitative or quantitative. Analyzing risk through quantitative analysis is commonly an attempt that is made to numerically find the chances of various hostile events and the chances of the losses to occur because of the event happening (Elman & Interdisciplinary Conference, 2010). On the other hand, analyzing risks through the qualitative method is commonly used, as it does not entail the use of numeric and probabilities or even the procrastination of losses. Rather, the qualitative analysis uses the definitions of different challenges and risks coming up with counteract measures that will help in solving the difficulties if the attack happens and finding the extent in of vulnerability (Farr, Dryzek & Leonard, 1995). Countries that are suitable and the factors to consider. As the board management have suggested, it is of key importance to consider the suitable locations that are available where the company can continue producing the cotton T-shirts. It is also of great importance to consider the availability of raw materials that are required for the production of the T-shirts, availability of labor and the cost of labor in a particular region. The countries where the board needs to set the company should not be corrupt. This will help in cutting down the production expenses hence increasing the number of outputs and the revenue generated by the company. While considering a suitable place to locate the business, Spain and Tunisia seemed to be the best place to put the business (Farr, 1993). The reason for choosing these countries was that they are still developing even though Spain is more developed than Tunisia. Both countries produce cotton in large quantities as the climatic conditions and the type of soil in these countries are favorable for the growth of cotton. The countries are less corrupt as compared to other countries that were suitable and the labor cost in this region is cheap and available. Democracy The level of democracy in a country is mainly determined by how free and fair the elections of those countries are carried out. It is believed by the international community that competition, fairness, and free elections usually create a political environment that is conducive for the development of democracy in a given country. As stated by Kofi Annan, the perception carried by the voters concerning the electoral and political efficacy is crucial in the process of democratization and the democracies that can establish stability in a state (Farr, 1993). The research about democracy started long time ago, but in recent years, some several forces that enhance democracy through monitoring the elections have emerged. It is not necessary for countries that are intended to have an election to look for countries that will help them in monitoring the election. The international community takes it as a country’s obligation to carry out a free, fair, and competitive election if the leadership and the people of that country intend to make their country a democratic state. Risk Analysis Risk analysis is a method used in assessment and the identification of factors that may affect the success of a business or a project in achieving its goals. The procedure can also help in defining the measures that can be taken in order to reduce the probability of the factors that may affect the business from occurring. The procedure comes up with measures that can be used in counteracting the challenges as they emerge. This usually helps in averting the negative effects that may affect the company’s capability to compete effectively (Murray, 1929). Low Wages In analyzing on the low wages, the manner in which the management and the shareholders of a company plans and organizes jobs has a great impact on the pay, job security, career progression for the workers who receives low payments. By using the qualitative approach method, the research intends to investigate how to offer job security and job progression to the individuals who earn low incomes and ways in which this can be achieved. Some of the key factors that the board chairperson and the members of the board team should put into consideration include competitive pressure in the regions, skills that are required. The fluctuations of demands, availability of laborites is advisable for the board members and the chairperson to employee the employees on a temporary basis as it helps in cutting down the labor cost. The board should also understand that the pressure facing the economy of a given country does not really determine the employment organization (Murray, 1929). Many governments in the developing countries restructure low budgets to the public sector, thus creating job insecurity as small units of production will be experiencing large fluctuations in demand. The purchasing behavior of the public also plays a key role in determining the cost of wages. This is because many suppliers will prefer to use temporary employment method, as it is the cheapest and easily available. Even though the members of the board can give job security to the employees without altering the wages, it is much riskier as the trade unions, consumers and the states may come in and demand for an increment of the employees who are employed. Proprietors of low-paid personnel Even though some employers have the capacity to introduce, changes that can help improve the security of jobs in their organizations. They can also improve the job progression without affecting the private sectors, their organizations without the low paid workers changing their own decisions. Neither the changes in the pressure exacted on businesses can influence the changes that are made by these employers. The public sector on the other hand may be required to put in place the social impact that governs them and the policies about their employment and how they can help to reduce insecurity between members who earns low income. It can be advantageous to the devolution of budgets and the public sector that uses smaller unit if they use the temporary employees. This is because the low waged employee’s helps in reducing the chances of uncertainty spreading and the factors that could result in charge of demand (Mukherjee & Ramaswamy, 1999). Political development. Tunisia experienced some political unrest in the year 2011 after the constituent assembly elections, which was won by the Islamism party. Tunisia is one of the major francophone countries in Africa. The country is also considered as a developing nation. The political unrest in this country was a result of an individual blazing himself in the year 2010. Several frustrations caused the man to blaze himself. These reasons are some of the key challenges that face the Tunisian country. The challenges include poor living conditions of the people, the country experiences a high unemployment level, bad governance during the period and the country was facing major economic challenges. In the year 2014, the country adopted a new constitution that has greatly helped in improving the country’s affairs and the interest of the citizen. The constitution has been implemented and this has resulted to key benefits to the developing country. The individuals livelihood has been improving with time and the levels of unemployment have greatly been reduced. A prime minister rules the Tunisia nation. The country has been politically stable since the new constitution was adopted even though the country still faces several challenges such as unrests (Mukherjee & Ramaswamy, 1999). The Spanish politics are usually based on the country’s constitution, which was established in the year 1978. The constitution if the framework of the Spanish politics. The country is established as a democratic as a social state. The sovereignty of this country is vested in the people, as they are the one who gives power to the state emanate. The country has a parliamentary form of governance where by the parliament is established in a monarchical form. This is a form of governance that is socially represented, constitutional monarchy, democratic and the prime minister rules that. The country’s judiciary is independent from the legislature and the executive. The country can be considered as a developed country and as well as a developing country. The state is politically stable, but it experiences some economic challenges. Spain is a key producer of cotton as the country’s climate and the loam, clay soil favor the growth of cotton (Mukherjee & Ramaswamy, 1999). Challenges likely to be experienced Some of the major challenges that the company and the board includes political unrest, labor unions fighting for the rights of the employees as they may advocate for an increase in salary. Labor unions are the major challenge in developing countries. The unions tend to campaign for the rights of the workers as they advocate better working conditions, better salary, and the rights of the people. Government in these countries might also come up with laws that set the minimum required salary for the people. These laws are usually set without considering the interests of the employers, thus, affecting the businesses and interests of the shareholders. Frequent strikes by the workers are a key challenge in many developing countries. These countries experience frequent strikes from the works, thus, hindering the normal operations of the business organization (Farr, 1993). Expected Challenges Developing countries are prone to political unrest and economic challenges. These are some of the key challenges that the T-shirts, Cotton Company will be facing. It is usually difficult to ascertain about the future in these countries. The board members should be prepared to counteract challenges that may result from the employees, as they demand for a pay increase. Even though the selected countries are good producers of cotton, the company may face transportation challenges. Many developing countries have a poor infrastructure system. This may trigger challenges associated with getting the goods to the market at the right time and availing the raw materials at the right time. Poor market can also prove to be a challenge. The financial challenges faced by the people living in the developing countries. If the board members put the suggested plans in place, and with procrastination that the countries will not experience political unrest. The company will have achieved tremendous achievements (Farr, 1993). Reference Elman, C., & Interdisciplinary Conference. (2001). Bridges and boundaries: Historians, political scientists, and the study of international relations. Cambridge, Mass.: MIT Press. Farr, J., Dryzek, J. S., & Leonard, S. T. (1995). Political science in history: Research programs and political traditions. Cambridge: Cambridge University Press. Farr, J. (1993). Discipline and history: Political science in the United States. Ann Arbor: Univ. Of Michigan Press. Murray, R. H. (1929). The history of political science: From Plato to the present. Cambridge: Heffer. Mukherjee, S., & Ramaswamy, S. (1999). A history of political thought: Plato to Marx. New Delhi: Prentice-Hall of India. North Carolina Historical Society, University of North Carolina (1793-1962), University of North Carolina at Chapel Hill, & University of North Carolina at Chapel Hill. (1900). The James Sprunt studies in history and political science. Chapel Hill, N.C: The University. Warner, E. E. (1986). A brief history of political science at Ohio Wesleyan University. Delaware, Ohio: University. Read More