Case Study

Country Risk Assessment Based on Inflation

An international business is considering expanding its operations into one of four new markets in late 2022. A key factor in their decision is economic stability, particularly the risk of rapidly rising costs for materials and labor. The research team has gathered the following approximate annual inflation data for the year:

  • Brazil: 9%
  • Pakistan: 20%
  • Poland: 14%
  • Türkiye: 72%

Based solely on the provided inflation data, which country would pose the greatest economic risk to the business due to price instability? Justify your choice by explaining what the high inflation rate implies for the business.

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Updated 2025-08-09

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