There are no prerequisites, but consider:
Introduction to Economics will help.
OPEN TO IE STUDENTS ENROLLED IN THE FOLLOWING DEGREES (SINGLE AND DUAL): OPEN TO ALL PROGRAMS
Some events occurred in the last decades such as the global crisis, terrorism, populist policies in LATAM, Europe and USA, the debt crisis in the EU or the Arab Spring have caused a generalized increase in Country Risk. According to the World Bank, the main multinationals and insurers foresee an increase in socio-political and macroeconomic risks in the coming years. Country risk is among the main obstacles for the international activity. Since the beginning of the global crisis in 2008, we are used to talking about the spread in debt markets, but country risk also affects trade and direct investment.
In the decision-making process, for a proper risk management to be done it is essential to:
•know the risks and the factors that cause them,
•handle the most rigorous ratings
•learn the mechanisms of mitigation and risk transfer available in the market.
After completing this course, students:
-will be capable of analyzing and understanding economic and sociopolitical events and their effect on multinationals.
-Students will be capable of identifying the different modalities of country risk that can affect their companies and of making their own assessment.
-They will know how to manage those risks by using the mitigation and risk transfer tools available in the market.
For this, the risk assessment methodologies of the OECD, Standard & Poor´s and Export Credit Agencies will be analyzed. Analytical treatment of the underlying theory will be kept as simple as possible and the course will have a strong practical orientation.
Students will work through the course on a case study project that will require to develop a country risk assessment and a comparative analysis for two specific countries.
Students are expected to acquire the following skills: Cognitive:
•Capacity to frame information, academic or journalistic, on international economic and financial events in a global vision and in the theoretical debates on country risk.
•Capacity to write analysis, reports and studies on various aspects of economic, sociopolitical dimensions. Instrumental: -Use and interpretation of Index numbers.
•Capacity to abstract and work with simplified versions of reality.
•Familiarity with databases.
•Ability to interpret and communicate financial arguments and financial analysis in precise and concise manne. Attitude: -Think critically about the limits of financial integration and be able to question experts’ assessments with sound arguments.
•Be open to different views and arguments regarding financial events.
