EQUITY INVESTMENT & COUNTRY RISK
Various types of risk must be considered at different phases of investment, from different points of view and from different objectives.
In examining investment opportunities abroad, investors must focus not only on the profitability of the investment or the project that it must produce.
In the case of extraordinary transactions abroad, there are many risks to consider.
A significant concern comes from the non-commercial risks, and among them, the greatest concern is the “country risk”, related to the host countries.
These are risks that the investor must identify and evaluate carefully, as they are normally very difficult to mitigate.
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Transfer restriction
Non-convertibility
Inability to transfer
Expropriation of investments
Expropriation of funds war and civil unrest
Loss of assets
Permanent loss of use
Violation of the contract
Judicial decision of bankruptcy
Denial of the appeal
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Equity founds
Dividends
Profit
Monetary benefits
Property
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