Q934
Risk of doing business in particular country and arises from foreign investments is classified as
A.
country risk
AnswerB.
foreign risk
C.
proffered risk
D.
common risk
Answer: Option A
Solution
Answer: Option A
Solution:
Risk of doing business in particular country and arises from foreign investments is classified as country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.