Country Risk

Country Risk in International Trade

Meaning of Country Risk, according to the Dictionary of International Trade (Global Negotiator): The possibility of non-payment caused by such buyer-country related problems as political instability, war, arbitrary government action and exchange inconvertibility, as opposed to problems that could be encountered by the buyer such as insolvency or bankruptcy. A country-risk country classification is offered by COFACE (Compagnie Française d'Asssurance pour le Commerce Exterieur). Also called political or economic risk.