Apply Your Understanding

AACSB: Written and Oral Communication, Ethical Understanding and Reasoning, Information Technology, Analytical Thinking, Diverse and Multicultural Work Environments, Reflective Thinking, Application of Knowledge, Interpersonal Relations and Teamwork

  1. 6-15. Country risk refers to the ways governments restrict or fail to restrict business activities. The nature of such restrictions varies around the world. In each country, national economic success substantially depends on the quality of laws and regulations. Government must strike the right balance—too little regulation promotes uncertainty; too much causes hardship. Country risk is revealed in various ways.

    • Foreign investment laws

    • Controls on operating forms and practices ...

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