Analyzing Country Risk -Political Risks
Contents
The importance of Analyzing Country Risk
Political Risk
Political Stability
Economic Factors
Subjective Factors
Capital Flight
The importance of Analyzing Country Risk
Interaction of politics and economics
International economic environment =]heavily dependent on the individual policies
Understanding the close linkage between a country’s economic policies and the degree of exchange risk, inflation risk, and interest rate risk is vital
What are the Political risks
What kind of aspects can we approach
Political Stability
Country risk
Transfer and convertibility risk
(i.e. the risk a government imposes capital or exchang
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