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Examveda

Risk of doing business in particular country and arises from foreign investments is classified as

A. country risk

B. foreign risk

C. proffered risk

D. common risk

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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