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Q1.

Argentina: According to the Euler Hermes (Leading trade solution provider) Argentina is
sensitive for investment and country is clubbed with C grade countries. Although state is back
on its track of sustainable economic development but its feasibility of foreign investments is due
to elimination of exchange rate restrictions. And ratings by S&P about Republic of Argentina
states that countrys economic outlook is stable.

China: S&P highlighted that Republic of Chinas rating lowered from A+ to A-1 but country is
stable in long-term context of investments in according to its economy and politics. But Euler
Hermes country risk rating categorized China in short term ratings as medium risk country.

Czech Republic: S&P rated country as AA and A-1 and forecasted countrys growth rate to be 2.5
percent in coming years. Euler Hermes report 2017, states that country is graded as A in
medium term ratings having a low risk factor.

India: Euler Hermes stated country as B grade and short-term ratings of risk declared it as low
risk country. But according to a survey of World Bank, out of 190 countries India is ranked at
130th for doing business and have a weak regulatory framework along poor taxation settings.

Indonesia: Situation of country is similar to India and graded as B level country with a low risk
factor as 1.

UAE: Euler Hermes analysis of UAE resulted in grouping country with BB level countries with
respect to its economic and political outlook and ratio of risk in country is also low. Whereas rise
in inflation id expected up to 5 percent in 2018 due to higher prices of energy and VAT.

Q2. Egypt trade policies and barriers:

Country is rated as C3 means risk factor of investment is at sensitive level, according to a report
by Euler Hermes 2017. Although Egypt is located in a very strategic location of region and have
an access to middle easts and African markets but country has faced uncertain conditions in their
political transition and considered to be an instable location in long-term. Foreign relations of
country are also not stable for instance in terms of Israel, Syria and Iran etc. and it is also
declared as poor and show high unemployment rate.
But with respect to international trade, Egypt have more privileged policies with European Union
countries which will be a plus point for us to extend our operations in the country. Because Egypt
possess a traffic schedule towards all countries apart from those having a trade agreement and
European countries are part of preferential countries. While European Bank for Reconstruction
and Development (EBRD) is working in Egypt for betterment of their economic outlook
specially in enhancement of agribusinesses, but other areas of focus are telecommunications,
transportation, financial and municipal infrastructure.

Q3. Since July 2016 total number of WTO member countries are 164. While Observer countries
are 22 comprising of Algeria, Andorra, Azerbaijan, Bahamas, Belarus, Bhutan, Bosnia and
Herzegovina, Comoros, Equatorial Guinea, Ethiopia, Holy See, Iran, Iraq, Lebanese Republic,
Libya, Sao Tom and Principe, Serbia, Somalia, Sudan, Syrian Arab Republic, Timor-Leste and
Uzbekistan.

Most common and explicit shared characteristics of these observer states are that their economic
overview and political stability doesnt seem upright relative to all other states and in geographic
point of view most of them are part of Middle East and North Africa.

Q4.

CPI index and ranking: CPI stands for Corruption Perception Index and it ranks countries with
respect to the corruption observed in them. This German led initiative by Transparency
International was launched in 1995 to converge the global phenomenon and its implications but
it is not considered as a tool to gauge the effects of policies by country and also thought to be
controversial. It indicates the ratio of corruption ranking from 0 to 10, where zero is highest level
while 10 is minimum level of corruption.

Five lowest: In descending order, top five countries having highest ratio of corruption perceived
in 2016 annual report are: Yemen, Syria, Korea (North), South Sudan and Somalia.

Five highest: List of countries that have minimum rate of corruption perceived in index 2016 by
transparency international are: Denmark, New Zealand, Finland, Sweden and Switzerland.
Similarities: Countries with higher ranking are European and Central Asian and have freedom of
press, access to information about public spending from government and autonomous
governance systems.

While countries ranked lowered in index possess high rate of corruption and they are from
Middle East Africa and Sub-Saharan region. It is due to poor governance and performance of
public institutions of country such as judiciary and police. Unethical acts like misuse of public
funds, bribery and extortions are common in these countries.

Q5. USD/CAD=1.2232/37

1. Currency pairs are quoted as USD/CAD forming currency pair of US dollars versus
Canadian Dollar, and in pairs, value of currency is recognized in contrast to anther
currency.

2. Case in point, first currency is base currency which is US Dollar(USD) while second
is quote currency Canadian Dollar (CAD).

3. Bid Price is the maximum value that a buyer is ready to pay for the security and case
in point 1.2232 USD is bid price against 37 CAD. It is considered at values at left
side of currency pairs.

4. Ask Price is the at which market is willing to sell their currency at, such as 1.2232
USD. It is always equal or higher then Bid price.

5. The difference between bid and ask price is called Spread. In our case the value of
difference between buying 37CAD for 1.232USD or vice versa is known as spread.

Q7. According to Forbes, list of 2000 global business giant firms and companies are
produced with respect to sales, profit, asset and their market value metrics. There is
also a specified criterion according to which companies become eligible to be in this
list. Most of the countries in top 20 are either from USA and China, and among them
most are related to Banking and Financial Sector, Computing, telecommunication and
Energy sector. All these companies are multinational and their target market is huge,
almost global in this context.

Q8. Selected country for expansion of our company is Dallol Ethiopia, it is located in
Africa and its nominal GDP is $846 according to IMF. It is also stated that country
has most hot climate and its majority of population is in agriculture business. So, our
product has to be altered in price due to countries among one of the lowest in GDP,
and due to hot climate, we have to alter our cellphones as they are designed for
moderate environment.

Q9. Annual country reports on Human Rights Practices are prepared from different
sources around the globe. These sources could be governmental, non-governmental
organizations, journalists, human-rights or labor activists etc. These reports are
further reviewed by US Bureau of Democracy, Human Rights and Labor and other
concerned departments.

Q10. CPI index indicates the ratio of corruption present in the respective country. It is
a tool to highlight the immoral and unethical presence of dishonesty in a state. It is
measured from zero to 10 scales, zero indicating highest rate of corruption while 10
with the least corruption. This is a tool which enable policy makers to devise and
implement plans to counter the phenomenon.

List produced by transparency international ranked Yemen, Syria, Korea (North),

South Sudan and Somalia as most corrupt while Denmark, New Zealand, Finland,
Sweden and Switzerland as least corrupt countries in the world. This group of five
countries differ on the basis and quality of freedom of press and open access to
 government spending information for public and independent governing institutions
like police and judiciary.

REFERENCES:

30 poorest countries in the world - Business Insider. (n.d.). Retrieved from

http://uk.businessinsider.com/the-25-poorest-countries-in-the-world-2017-3/#1-

central-african-republic-gdp-per-capita-656-535-30

Corruption Perceptions Index 2016 - Transparency International. (n.d.). Retrieved

from https://www.transparency.org/news/feature/corruption_perceptions_index_2016

Country Reports on Human Rights Practices for 2008 Vol.1 - Google Books. (n.d.).

Retrieved from https://books.google.com.pk/books?

id=qHolsCdgvFsC&pg=PR13&lpg=PR13&dq=how+annual+country+reports+on+hu

man+rights+practices+are+prepared&source=bl&ots=RD-

EHH9egS&sig=HbHeEZTeJKd5uf-

ksyhO52EE7f4&hl=en&sa=X&ved=0ahUKEwiagcrYzNfXAhWD2qQKHb0YDOsQ

6AEISjAH#v=onepage&q=how%20annual%20country%20reports%20on%20human

%20rights%20practices%20are%20prepared&f=false
 Country risk reports for international trade - Euler Hermes. (n.d.). Retrieved from

http://www.eulerhermes.com/economic-research/country-risks/Pages/country-reports-

risk-map.aspx

Egypt - Project Financing | export.gov. (n.d.). Retrieved from

https://www.export.gov/article?id=Egypt-Project-Financing

Egypt Country Report: Risk Analyses by EH Economic Research. (n.d.). Retrieved

from http://www.eulerhermes.com/economic-research/country-

reports/Pages/Egypt.aspx

T.A.S > Tariff Schedule > Introduction. (n.d.). Retrieved from

http://www.tas.gov.eg/English/Tariff%20Schedule

Understanding Forex Bid & Ask Prices and the Bid/Ask Spread. (n.d.). Retrieved

from http://www.forexfloor.com/bid-ask-prices.html

WTO Members and Observers. (n.d.). Retrieved from

https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm#observer