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Detail what is the country specific risk when the investment is made internationally

Detail what is the country specific risk when the investment is made internationally

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Answer #1

Country specific risk is the risk of loss in the value of the investment due to factors that affect the specific country in which the investment is made.

This risk affects the investment in that country alone, and not the entire international market.

For example, political unrest in the country, or an economic slowdown in that country, are the examples of risk factors that may affect a single country alone.

Country specific risk is that risk that the investment may lose value due these country-specific factors

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