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Home > QFINANCE Dictionary > Definition of country risk

Definition of

country risk

International Trade

risk of doing business in particular country the risk associated with undertaking transactions with, or holding assets in, a particular country. Sources of risk might be political, economic, or regulatory instability affecting overseas taxation, repatriation of profits, nationalization, currency stability, etc.

Recommended Further Reading (Term count)
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    Given the poor state of public-sector resources around the world, made even worse by the global financial crisis, governments have been seeking to enhance resources by attracting private sector participation. Such participation may be somewhat unstructured, or more formal. The public–private partnership (PPP) is one of the formal approaches to cooperation. PPP, in various forms, is not a new construct. The current frailties of the global economy...
  • Measuring Company Exposure to Country Risk
    by Aswath Damodaran
    If we accept the proposition of country risk, the next question that we have to address relates to the exposure of individual companies to country risk. Should all companies in a country with substantial country risk be equally exposed to country risk? While intuition suggests that they should not, we will begin by looking at standard approaches that assume that they are. We will follow up by scaling country risk exposure to established risk...

Definitions of ’country risk’ and meaning of ’country risk’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’country risk’ and other financial terms with our online QFINANCE Financial Dictionary.

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