Student guide Faculty of Economics A.Y. 2008/09

Topics in Development Economics (Country Risk Analysis)
Lesson timetable, Notice board, Additional material
Lecturers
HELG RODOLFO
BOTTINI NOVELLA
Lecturers
HELG RODOLFO
BOTTINI NOVELLA
Aim of the course
Country risk is a multidisciplinary approach that covers financial, political and macroeconomics concepts. In a more integrated world, companies should base their global investment decisions not only on economic data, but should consider both the political and the macroeconomic environment. In this situation, country risk analysis helps corporate leaders understanding whether a particular country can pay the debt. However this analysis should be matched with a political risk analysis that tells them whether that country will pay its debt.  
The course aims to provide students with some preliminary tools in country risk analysis.
Syllabus
No specific pre-requisites are necessary, although previous course in economics, international finance or global business/political economy could be useful. The course will be interactive and involve intense student participation. Final mark is based on lecture participation (20%), an individual essay (40%) and a final exam (40%).
Part One: Country Risk Analysis – Basic Concepts-
Part Two: Country Risk Methodologies, Country Risk Models and Rating Agencies Approach
Part Three: Political Risk Analysis
 
Examinations
Final mark is based on lecture participation (20%), an individual essay (40%) and a final exam (40%).
 
Reading list
  • Bouchet M, Clark E, and Groslambert B (2003): “Country Risk Assessment: A Guide to Global Investment Strategy”, The Wiley Financial Series.
  • Khanna, T., Palepu K. and Sinha J. (2005): “Strategies that Fit Emerging Markets”, Harvard Business Review, June, pp.63-76.
  • Campbell, R. Harvey, Claude Erb and Tadas Viskanta (1996): “Political risk, financial risk and economic risk”, Financial Analysis Journal, 56:6, pp.28-46.
  • Standard & Poor’s: Sovereign Credit Ratings: A Primer, September 2005
  • Bremmer, I. (2005): “Managing Risk in an Unstable World”, Harvard Business Review, June
  • Bremmer, I. (2007): The J-Curve Simon & Schuster
 
  • BCG Chapters 1-3
  • Khanna, T., Palepu K. and Sinha J. (2005): “Strategies that Fit Emerging Markets”, Harvard Business Review, June, pp.63-76.
  • Campbell, R. Harvey, Claude Erb and Tadas Viskanta (1996): “Political risk, financial risk and economic risk”, Financial Analysis Journal, 56:6, pp.28-46.
  • BCG Chapters 4,5,6,7
  • Standard & Poor’s: Sovereign Credit Ratings: A Primer, September 2005
  • Bremmer, I. (2005): “Managing Risk in an Unstable World”, Harvard Business Review,  June
  • Bremmer, I. (2007): The J-Curve Simon & Schuster