The Economic Situation Of A County - 1255 Words

To determine the overall economic situation of a county one must consider all of its current risks. The country’s political situation is one area to consider. Any analysis must consider the stability of the county’s current government. Other economic indicators that must be assessed are the country’s gross domestic product, unemployment rate, inflation or deflation, the strength of country’s currency, it’s trade balances and the value of its government issued bond (credit). Political Risk Political risk is anything that has a direct correlation with the government or political setup of a country. For example political risk can be expressed through political stability, currency inconvertibility, changes in taxation, corruption, and a weak legal system for investor protection. In recent years the political stability of Chile has not been favorable. Only 24% of Chileans support their politicians (EIU, 1). Chile was always considered one of the least corrupt of Latin American countries, however, recently there as been some allegations of corruption. In February 2015, Sebastian Davalos, the president’s son, had been accused of using his authority to make profitable land deals. He had acquired $10million loan from the second largest Chilean bank for a small property company, Caval, which is half-owned by his wife. The company later bought rural land and re-zoned it to create urban development. This made the company $5 million in profit (Roberts, 1). In spite of these issues,Show MoreRelatedTransportation Provides Individuals Mobility And Accessibility1588 Words   |  7 Pagesthrough various means of transportation. These means are dictated by transportation planning. Transportation planning is dictated by civic and economic needs. The economic needs are the most prevalent and arguably the most significant. 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