How could capture company exposure to country risk

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Reference no: EM132646226

It is true that investors do have concerns about country risk and financial stability in evaluating risk and firm's value. In addition, most investors would accept the general proposition that different companies in a market should have different exposures to country risk.

The main determinants of a company's exposure to country risk are:

  1. Revenue Sources
  2. Production Facilities and 
  3. Risk Management

Problem 1: Discuss the three determinants and how could capture company's exposure to country risk.

Problem 2: Also , Discuss whether you agree or disagree that well designed CEO pay system can resolve agency problem in order to avoid suboptimal corporate policies (e.g. under investment) and a subsequent deterioration in operating performance.

Reference no: EM132646226

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