The paper “ Greek Debt Crisis - Application of Country Risk to Crisis” is a spectacular example of a statistics project on macro & microeconomics. The report is based upon the Greece debt crisis and looks in-depth at how the Greece government has submerged in debt as well as a recession coupled with growing racism and a humanitarian crisis that has led to protests and social disruptions by its citizens and currently requires a bail-out plan from the IMF and the eurozone countries to help lower the debt levels. The Greece government is marred by massive corruption, tax evasion, and uncontrollable government spending in sectors such as the military that do not generate any economic growth for the country (Lyn 2011).
The report also looks at how the economy has worsened over the years from 1827 at a government budget deficit of 3% of the GDP to 12.7% deficit of the GDP in 2009 and is on an increasing trend. The report indicates the high-risk nature of investing in Greece, corruption in government, and lack of transparency in government. An overview of the history, the reasons for the Greece crisis, country risk, and its application to the Greek crises is also looked into.
The report finalizes on the strategies the companies can take to reduce exposure to host government take over and the decision strategy for an investor who seeks to make a return from the country. The recommendation for investors who seek opportunities in the country is that they should not invest in the country due to the risky nature involved as a result of government corruption, high rates of taxation, lower interest rates on returns, high recession, falling economy and company sales, job cuts in the various industries in the country, growing racism and social disruptions as a result of strict fiscal austerity measures and failure by the government to secure enough funds for its bail-out plan from the IMF and the eurozone countries.
The economic growth of the country is lower due to uncontrolled government spending compared to its revenue almost leading the country into bankruptcy.
Cline, W. R. (2012). Resolving the European debt crisis. Washington, DC: Peterson Institute for International Economics.
Lynn, M. (2011).Bust: Greece, the Euro, and the sovereign debt crisis. Hoboken, N.J.: Bloomberg Press.
Mauldin, J. & Tepper, J. (2011).Endgame: the end of the debt supercycle and how it changes everything. Hoboken, N.J.: John Wiley.
Mitsopoulos, M., &Pelagidis, T. (2011).Understanding the crisis in Greece. Basingstoke: Palgrave Macmillan.
Nelson, R. M., Belkin, P., & Mix, D. E. (2010).Greece's debt crisis overview, policy responses, and implications. Washington, D.C.: Congressional Research Service.