Country Risk
Colin White and
Miao Fan
Chapter 9 in Risk and Foreign Direct Investment, 2006, pp 146-167 from Palgrave Macmillan
Abstract:
Abstract This chapter examines the nature of country risk as a type of systematic risk which, like industry risk, extends beyond a single enterprise, in this case to the enterprises which operate within the jurisdiction of a particular country. National frontiers are among the most clearly demarcated boundaries which exist in the economic and political world. No part of the world is outside a national jurisdiction. It is obvious who holds sovereignty and is responsible for the law and policies which operate in a particular country. Risk arises from unanticipated change in such policies. The aim of this chapter is to establish a template for a measure of generic country risk.
Keywords: Exchange Rate; Foreign Direct Investment; Host Country; Investment Project; Political Instability (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62483-2_9
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DOI: 10.1057/9780230624832_9
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