A Simplified Simulation Model for Country Risk Evaluation
Country risk evaluation (CRE) models have been used to aid decision makers to determine whether to invest in particular countries or not. Recently, CRE models have started evolving into more sophisticated and rather complex models. However, there is doubt about the necessity of their complexity. In this paper, a new simplified CRE model is proposed and simulation results are compared with an existing CRE model. The proposed model is simple enough to be used by novice users and easily expandable. Analysis of the simulation result also suggests that the proposed CRE model may perform as well as a complex model. Lastly, some findings from this study are discussed as future research directions.