Thursday, August 8, 2019

Finance assignment related to china and jordan political risk

Finance related to china and jordan political risk - Assignment Example 14). This paper aims at comparing the corruption price index rating of China and Jordan, reasons for the differences, and issues that create these differences, a rating of political risks of Chin and Jordan, examples of political risks on all countries, and potential drawbacks, and ways to hedge against risk. Corruption percentage index in Jordan is at 45 a decline from the 2012 rating of 48 while China’s corruption percentage index is at 40 showing that it increased from a rating of 39 in 2012 (Transparency International., 2014). Both countries were downgraded in the latest corruption percentage index owing to some factor that necessitated this action by Transparency international. The corruption price index differ by 5 points that that of Jordan being higher than in China and this can be explained by some reasons including a deterioration in political risk in China owing to increased political violence, slowing of the growth of the economy, and nationalism of resources. In Jordan, the differences is as a result for the lowering of corruption percentage index are fighting in Syrian that have led to the influx of refugees into Jordan leading to the domestic shocks on the Jordan economy and domestic strain on the economy owing to insecurity (Intelligence Quarterly, July 22, 2011). The issues that this could create are a reduction in foreign investment in the two countries as well as a reduction in the economic growth of the country. The other issues that could be created by increased political risk I inability of the county to attract new investments and investments by local investors in other countries with a high corruption percentage index. Generally, the political risk in China is low while in Jordan it is high. Examples of political risk in Jordan include the 2011 protests that rocked the country. There have not been enough reforms as agreed in 2011, as a measure to end the protests

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