Country Risk Analysis. Management Research Paper. (Research Paper Sample)

Country Risk Analysis
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1. Write about country risk also about his factors- which are political and finance
Country risk is a term used in referring to the risk undertaken by a country when they decide to invest or lend out money, resources, labor to a foreign country. This risk occurs due to changes in the business environment that may eventually greatly affect the profits earned by a business or the value of assets in the country. Country risk therefore represents the future severe impact of a country’s political and economic environment on the Multinational Organizations flow of cash and in this case it can be used in assessing countries where these Multinational Organizations have set up shop, used as tool to ensure that one does not end up conducting business in a country that has too much risk, and finally as a vital tool in the analysis used to make decisions concerning potential investment opportunities and locations for these investments.
Country risk in other words can also be termed as the extent to which political and economic instability interferes with the securities of issuers conducting business in a foreign country leading to the government defaulting on its bonds and other financial commitments.