Country economic risk(redirected from Country Economic Risks)
Country economic risk
Developments in a national economy that can affect the outcome of an international financial transaction.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Country Economic Risk
The likelihood that economic developments in one country may negatively impact international transactions. Suppose Country A and Country B enjoy a free trade agreement, which greatly increased trade between the two nations. A protectionist party may be elected to office in Country B and immediately revoke the FTA. Not only will this affect business, perhaps both positively and negatively, within Country B, but exporters from Country A will suddenly find that their investments have evaporated. See also: Country political risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved