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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With C
  5. Country Risk

Country Risk

Definition of 'Country Risk'

The risk of adverse effects on the net cash flows of a MNC due to political and economic factors peculiar to the country of location of FDI.

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Related Terms

Factor Risk / Non-Factor RiskComparative AdvantageAidGross Domestic ProductLDCLess Developed CountryNostro AccountDiversifiable RiskEmerging MarketsMarket RiskPrice RiskRelevant RiskRisk LoverRisk PremiumRisk TransformationSecurity Market LineSyndicated LoanArbitrage Pricing TheoryBasis RiskBusiness Risk

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