/Estrin 2004) together with the fact that almost all (92 %) of the world's top 500 companies enter derivatives markets for hedging … purposes (ISDA 2008). -- state-dependency ; country risk ; foreign direct investment ; hedging …Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment …

comparable to that of returns in stock markets. Evidence is shown that there may be only minimal possibility of cross hedging … examined. Such markets, by allowing hedging of these aggregate income risks, might make for dramatically more effective … international macroeconomic risk sharing than is possible today. Retail institutions are described that might develop around such …