State the types of international risk, Risk Management

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International Risk: International risk can include exchange rate risk and country risk.

(i) Exchange Rate Risk: All investors who invest internationally in today's increasingly global investment arena face the prospect of uncertainty in returns after the convert foreign gains back to their own currency.

(ii) Country  Risk: Country  risk,  also  referred  to  as  political  risk,  is  a significant risk  for  investors  today.  With  more  investors  investing internationally,  both  indirectly and  directly  , political  and  hence economic  stability  and  viability  of  a  country's  economy  need  to  be considered.

 


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