In this class, we examine political risks and what investors can do to mitigate them.

Assignment Sheet
Emerging Markets Finance

Class #1, Wednesday, October 19, 2005

Topic: Political risks

Case: Busang (A): The River of Gold, HBS #798-002

Assignment Questions:

1. What determine the value of Bre-X? As an investment analyst, how would you conceptually value this firm? What additional information would you need?

2. What kinds of risks did Bre-X face in Indonesia?

3. What kind of rules are most important to foreign investors in Indonesia's mining sector? How are these rules made?

4. How can Bre-X gain leverage over its Indonesian relationships?

5. How should David Walsh respond to Minister Sudjana's announcement?