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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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