Country Risk December 1997: Methodology

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Country Risk December 1997: Methodology

Country Risk December 1997: It could be worse

Country Risk December 1997: Overall Ranking

Country Risk December 1997: Top 10 highest climbers

Country Risk December 1997: Top 10 nosedives



In this latest assessment of country risk, Euromoney has established an overall score for countries using nine weighted categories which are calculated as follows: the highest score in each category receives the full mark for the weighting; the lowest receives zero. In between, figures are calculated according to the formula: final score = weighting / (maximum score-minimum score) x (maximum score-minimum score). The ranking shows the final scores after weighting.

The categories are:

* Economic performance (25% weighting), taken from Euromoney's Global Economic Projections (see page 63). Each country receives an average of economic performance evaluations for 1998 and 1999. Note that projections were unavailable for a number of countries, which therefore score zero automatically.

* Political risk (25%) is defined as the risk of non-payment or non-servicing of payment for goods or services, loans, trade-related finance and dividends, and the non-repatriation of capital. Euromoney asked risk analysts, risk insurance brokers and bank credit officers to give each country a score between 10 and zero.



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