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Country Risk

In: Risk and Foreign Direct Investment

Author

Listed:
  • Colin White
  • Miao Fan

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.

Suggested Citation

  • Colin White & Miao Fan, 2006. "Country Risk," Palgrave Macmillan Books, in: Risk and Foreign Direct Investment, chapter 9, pages 146-167, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-62483-2_9
    DOI: 10.1057/9780230624832_9
    as

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