Question:
A manufacturing organization considering expansion in India or China. Analyze the trends of the balance of payments accounts (including the current account, the capital account, and the overall balance of payments) over a 3-5 year period, on an annual or quarterly basis, for the proposed countries in your selected scenario. Be sure to interpret your findings. What conclusions can you draw from the BOP data and interpretations regarding your investment decision? (That is, does one country appear riskier or more favorable based on the analysis?)