“Country risk” presents not only a huge potential for analysis but also a revolutionary change in investment management. Investors, especially FDI companies, always draw an assiduous attention to this term, as it is one of the most effective evaluation before launching any business in a foreign country. In this article, VietnamCredit is going to show you the most basic idea of “country risk”, along with the latest country risk rating and country risk assessment map.
What is “country risk”?
According to Investopedia, “country risk” is a term for the risks involved when someone invests in a particular country. Generally, it varies from one country to the next and can include political risk, exchange-rate risk, economic risk, and transfer risk. In particular, country risk denotes the risk that a foreign government will default on its bonds or other financial commitments. In a broader sense, country risk is the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.
The latest country risk rating by Euler Hermes