Investing or trading in a country, whether domestic or foreign, involves some elements of risks and uncertainties depending upon its systemic, economic, financial, political, and business operating environments. Understanding the phenomenon of country risk is enormously vital for global...

Country risk is of increasing importance in the evaluation of overseas investments, international trade flows, foreign direct investments and volatility and predictability in stock market returns. A clear understanding of the concept, measurement and management of the level and magnitude of...