Please enable JavaScript.
Coggle requires JavaScript to display documents.
Managing Country Risk: A Practitioner’s Guide to Effective Cross-Border…
Managing Country Risk: A Practitioner’s Guide to Effective Cross-Border Risk Analysis
Globalization
Increasing communication between peoples, cultures and economies. It is driven by international trade, investment, technology and cross-border migration.
Foreign Direct Investment (FDI)
It is an investment made by a company or individual of one country in the business interests of another country. It is an active and direct investment, unlike securities investment, which is passive.
Country Risk
Is it possible to suffer a loss due to the political or economic conditions of a foreign country. It concerns the likely behavior of leaders, political parties, the military or other state and non-state actors.
Also includes the possibility of foreign activity that adversely affects a company's operations or investments in a foreign entity.
Risk Perception
Is a subjective assessment of the probability and severity of the risk. It is based on a person's perspective, values and experiences and is often influenced by media coverage and public opinion.
Is an important factor that determines how people respond to threats and make risk management choices.
Cross-border Investment
Investing in international markets. This includes purchases of foreign stocks, bonds, mutual funds and other financial products.
Political Risk
Political and social developments that may affect the value or repatriation of foreign investments from the host country, the home country or the international arena, or the repayment of cross-border loans.
Sovereign Risk
Occurs when a foreign central bank changes currency rules, reducing or canceling the value of currency contracts.
It examines the country's ability to repay debts and predicts future changes in economic indicators.
