country risk



  • noun the risk associated with undertaking transactions with, or holding assets in, a particular country. Sources of risk might be political, economic or regulatory instability affecting overseas taxation, repatriation of profits, nationalisation, currency instability, etc.


  • noun the risk associated with lending to, or investing in, a particular country. It is the level of bad debt associated with a country, which sets its international credit rating (also called ‘sovereign risk’).


  • Risk related with investing in another country. This includes economic risk, political risk, exchange rate risk and other government and social factors. Generally, the United States is considered to have a low country risk and serves as a benchmark for investors to measure other nations' country risk.