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    Country risk analysis

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    What political factors affect a country risk analysis? Are some more important than others? Please explain in 200-300 words.

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    Risk is the probability of having losses. Country Risk is a collection of risks associated with investing in a foreign country. These risks include political risk, exchange rate risk, economic risk, sovereign risk and transfer risk. (Investopedia, 2010) International diversification will reduce the unsystematic risk related to a particular country.
    One of the prominent factors affecting country risk is the political factors. Political Risk is the ...

    Solution Summary

    Response provides guidance regarding country risk analysis.