Prethodno priopćenje
https://doi.org/10.46672/zsl.6.6.10
Application of the analytic hierarchy process in country risk analysis
Milan Papić
; Libertas međunarodno sveučilište
Igor Zovak
; Libertas međunarodno sveučilište
Gordana Mršić
; Libertas međunarodno sveučilište
Sažetak
Entrepreneurial activities and associated risks could partially or completely disrupt expected financial results, and consequently lead to problems in business activity of a business entity. In doing so, even the simplest strategies, such as export and product placement, pose some short-term risks, while possible consequences increase with project duration, such as production capacity building or the development of strategic alliances. Activities abroad are generally less under the control of entrepreneurs, while the volume and the value of business are often more significant than transactions in the country of domicile, which is why it can be said that in international business risky events are more likely to occur and have higher potential damages. Country risk analysis helps identify such risks and assesses the level of negative impact on investment returns. Country risk analysis uses both quantitative and qualitative criteria, and one possible technique is the analytic hierarchy process. It is a relatively simple method that provides insight into the different connections and relationships among available alternatives. This paper presents one possible application of the AHP method in the country selection process when making decisions on directing investment activity.
Ključne riječi
risk; country risk; analysis; business decision-making
Hrčak ID:
269339
URI
Datum izdavanja:
28.12.2021.
Posjeta: 1.225 *