Country risk

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Country risk

The general level of political, financial, and economic uncertainty in a country which impacts the value of the country's bonds and equities. See:Sovereign risk.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Country Risk

The risk that a foreign government will significantly alter its policies or other regulations so that it negatively impacts the business climate in that country or the returns on a particular industry, company, or project. Macro-country risk deals with policy changes that harm, say, exporters or foreign-owned businesses in general, while micro-country risk implies that a government will deliberately target a particular company or way of making a living. For example, the political climate of a country in which defense contractors operate may turn against one particular company because of its perceived excesses or against defense contractors in general. This may cause the government revoke contracts for one or more defense contractors See also: Reputational risk, political risk, sovereign risk, geographic risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Release date- 22082019 - AM Best has released its 2019 Country Risk Assessment Reports, providing economic, political and financial system risk assessments on 136 countries, including seven new reports on Botswana, Cameroon, Cook Islands, Greece, Mozambique, Namibia and Turks and Caicos.
The country risk classifications were calculated by the Organization for Economic Co-operation and Development (OECD) based on the Kneepan Package that assessed country credit risk and classified countries into eight country risk categories, with 0 being the lowest risk and 7 being the highest (Organization for Economic Co-operation and Development 2010).
Increases in the inward FDI stocks due to reduced country risk could significantly and permanently elevate the level of GDP by 3.4 percent to 6 percent of GDP in Armenia, according to the study.
Fitch's Country Risk team likewise expects the Philippine peso to remain weak, but at a more gradual pace, to average 55.57 per dollar next year.
By adding powerful country risk analyses from IHS Markit to the content developed by our team of analysts, we can offer Crisis24 users one of the most robust complementary security information and risk assessment delivery platforms on the market,' stated Oliver Westmacott, president and chief operating officer, GardaWorld Security Services, International.
'That's primarily because many of their clients perceive that country risk profile of the Philippines is climbing.
Composite country risk could be defined as country risk is composed of transfer and convertibility risk and cases of greater significant events (e.g.
Key words: capital market integration; country risk; size risk; systematic risk.
Country risk assessment occasionally extends to countries where the company actually does business, and not just its place of registration, but many companies simply focus on the place of registration.
We view Bahrain as a comparatively risky place to conduct business, which is also reflected in our moderate insurance and country risk assessment of the country.
The Cameroon Country Risk Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Cameroon.

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