Question

What is meant by country risk analysis

Answer 1

Country risk is a macroeconomic risk which needs to be considered when an investor is interested in investing in foreign country assets. Country riks include political uncertainty, foreign exchange risk, terrorist activities, natural disaster, etc. To make a sound investment decision, country risk analysis needs to be done. Without such an analysis leads investors to make a bad decision. Country risk analysis helps us prevent making decisions that lead to a loss of our investment due to the factors listed above.

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