Abstract
This chapter examines the nature of country risk as a type of systematic risk which, like industry risk, extends beyond a single enterprise, in this case to the enterprises which operate within the jurisdiction of a particular country. National frontiers are among the most clearly demarcated boundaries which exist in the economic and political world. No part of the world is outside a national jurisdiction. It is obvious who holds sovereignty and is responsible for the law and policies which operate in a particular country. Risk arises from unanticipated change in such policies. The aim of this chapter is to establish a template for a measure of generic country risk.
….firms engaging in international production are at a disadvantage compared with local firms (Buckley 1996: 114). …the great puzzle about FDI remains. Why do it at all?
(Buckley 1996: 110)
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© 2006 Colin White and Miao Fan
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White, C., Fan, M. (2006). Country Risk. In: Risk and Foreign Direct Investment. Palgrave Macmillan, London. https://doi.org/10.1057/9780230624832_9
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DOI: https://doi.org/10.1057/9780230624832_9
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-52310-8
Online ISBN: 978-0-230-62483-2
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