Country risk and a quick look at Latin America

Country risk refers to uncertainties related to cross-border transactions. Different types of risks should be analyzed using structures relevant to the type of transaction. A system designed to flag potential risks for a long-term foreign direct investment reveals a mixed situation in Latin America....

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Bibliographic Details
Published in:Business economics (Cleveland, Ohio) Ohio), 1999-07, Vol.34 (3), p.30
Main Author: Meldrum, Duncan H
Format: Article
Language:English
Subjects:
Economic growth
Economic models
Economic policy
Foreign exchange rates
Foreign investment
Macroeconomics
Political risk
Profits
Risk assessment
Risk factors
Sociopolitical factors
Studies
Trends
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Summary:Country risk refers to uncertainties related to cross-border transactions. Different types of risks should be analyzed using structures relevant to the type of transaction. A system designed to flag potential risks for a long-term foreign direct investment reveals a mixed situation in Latin America. Brazil and Venezuela present relatively high economic policy risks that may reduce anticipated long-run growth. Brazil's exchange risk fell sharply after it floated the real. Argentina's exchange risk, on the other hand, increased sharply in the past twelve months. Mexico's policy and exchange risks fall in the middle range.
ISSN:0007-666X
1554-432X