Country risk is the risk that the business environment in a host country will change unexpectedly.

Question

Quizplus · Accepted Answer

Country risk is the potential of economic, political, and social events in a country to affect the business climate and the conditions for operating in that country. These events could include changes in government policies, natural disasters, acts of terrorism, or civil unrest. Thus, country risk is indeed the risk that the business environment in a host country will change unexpectedly.

Country Risk Is the Risk That the Business Environment in a Host