Country Risk Case Study Example | Topics and Well Written Essays - 1250 words

Country Risk - Case Study Example Currently, the company fails to reach an agreement with the Hong Kong government to fund a much-needed 301 acres of expansion and started to give employees the sack. HKDLD has been losing profits that leads to the present state of being. All creative and design works are halted leaving a "shell" of 10 member team after the stripping off the "imaginers" (Business Week, 2009). Walt Disney Company (WDC) may just walk away from the negotiation from the government to focus on the upcoming Disney Shanghai. Yet Disneyland is significantly a landmark and tourist attraction, the HK government can find no comfort zone in abandoning it or funding the business. The strategy is only to keep on improving it as a competitive edge over Disney Shanghai scheduled to open in 2014. This implies the need of constant influx of taxpayers' fund for HKDLD expansion to keep the economy on the road to recovery, even though the present spending hurts the country's expenditure with HKDLD's profit book in the red expectedly (NPR, 2009). The nature of the existence of the risks of this Private-Public Partnership (PPP) project occurs due to the complexity and uncertainty of the interaction of factors that includes financing, taxation, technical details, market conditions and changes over the duration of the project (Yin Shen, Platten, 2009). Hence for the HKDLD project, the risks affecting the project expansion are identified with their preventive measures. To achieve the value for money in PPP projects, risk are allocated between this pair of private and public sectors in partnership. The risks should be allocated accordingly with respect to the type of risk and the ability of either sector to mitigate them. Based on this principle the risks are outlined alongside the preventive measures by means of allocations of identified risks. During the start of the expansion, site acquisition risk is present in land acquisition and or during retaining or demolishing existing buildings. The HK government is responsible for ens uring the acquisition of the HKDLD site and protecting the site from any intrusion and all land uses in surrounding areas. The operational private partner is responsible for the operational process of site protection or demolition of existing buildings or facilities. In all construction, the risk associate with adverse underground conditions is taken care of by the private partner since they are in charge of site survey particularly on the underground conditions that deals with the stability of foundation and supply of utilities. Polluted land and surroundings is a risk borne by both sides by the right legal disposal of construction waste and enforcement of good house keeping. Land reclamation runs the risk of delay of construction and is allocated to the private partner for adhering to the project deadline Volatility of market changes is always present with factors such as the