ABC Bank has made several big loans to a mining equipment manufacturer that sells its equipment to the copper mining industry in Chile. Political unrest in Chile is a source of what kind of risk for ABC Bank?

Question

Quizplus · Accepted Answer

Country risk arises from political unrest in a specific country, affecting the operations and profitability of companies within that country, and consequently, the ability of borrowers like the mining equipment manufacturer to repay loans.

ABC Bank Has Made Several Big Loans to a Mining