what are the differnces in country risk between the united states and japan?

Expert Solution

The following are differences between country risk between USA AND JAPAN

Country risk comparison
Paramteres	USA	JAPAN
Risk Tier	USA falls under CRT -1 Tier , signifying that usa has very low country specific risk	Japan falls under CRT 2 category , signifying Low but significant amount of country risk
Pillars of country risk	Economic risk is very Low	Economic risk in japan is very Low
Political II	Political Risk is very Low with a score of around 2.	Political Risk is Low with a score of around 3. ( Score 1 to 5, where 1 is better and 5 is worst )
Financial III	Financial system risk is very low	Financial system risk is low
Inflation based parameters	Inflation was moderate with 1.8 % considering country specific risk	Inflation was low at 0.6% signifying lower amount of forex based risk
GDP based economic growth	GDP growth parameters were high at 2.7% signifying higher stability in the system	GDP growth at 0.7% with lower stability in the economic system
Fiscal and monetary stimulus	Banks have adopted aggressive stabilization policy in the monetary system in order to further stabilize the risk parameters	Have adopted fiscal and monetary stimulus in order to stabilize the economic downturn

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jeff jeffy answered 2 years ago

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