What is the role of the home country in risk assessment?

Question

Quizplus · Accepted Answer

The home country plays a significant role in risk assessment as it provides important information about the company's political and economic stability, legal framework, and regulatory environment. This information is crucial for evaluating the overall risk associated with investing in the company's foreign operations. However, risk assessment is an ongoing process that focuses on both macro and micro issues, which means that the initial assessment conducted by the home country is important but not sufficient to evaluate investment risk over time.

What Is the Role of the Home Country in Risk