Country risk refers to the potential for a country’s political and economic environment to negatively impact investments or business operations within that country. This type of risk can be influenced by various factors, including: 1. **Political Stability**: The likelihood of political unrest, war, terrorism, or government instability can affect business operations and investment safety. 2. **Economic Conditions**: Economic factors such as inflation, recession, currency fluctuations, and other macroeconomic indicators can influence the profitability and viability of investments.
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