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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)
  • Essentials for Export Success: Understanding How Risks and Relationships Lead to Rewards
    by Paul Beretz
    More and more, companies located throughout the world are recognizing that the way to sustain long-term growth is not by continuing to emphasize local, in-country markets. Whether it be for better or worse, global business is a factor that can provide businesses with the opportunity to consider new and challenging markets. In 2008, we saw that severe credit and financial issues could spread quickly, and that no part of the world was immune....
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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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