Question

On Tools for Analysis:

1. Packenham Model: be able to identify and explain the four factors that constitute the "Packenham Model". How can an international manager use this model?
2. Model to Assess Prospects for Financial Crisis and Currency Devaluation (from “Causes and Consequences of Brazil’s Devaluation of the Real”): understand some of the key reasons Brazil had a currency devaluation in 1999.

Answer 1

Peckerman Model looks at four factors that help predict a country's political and economic stability and trend in the future. This is particularly very important for international managers as this model helps them understand the political and economic risks of entering/operating in a certain country.

The four factors which Peckerman Model looks at are:

• Credentials of president
• Political party system – fragmented vs consolidated
• Presidential leadership – charisma, politics
• Consensus in society

“Causes and Consequences of Brazil’s Devaluation of the Real" - missing