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Unformatted text preview: ods of Measuring Country Risk 2. Using the Country Risk Rating for Decision Making Determining the Overall Country Risk Rating H. Actual Country Risk Ratings across Countries across 1. Vary substantially among countries 2. Higher values represent less risk a. especially industrialized countries b. Risk ratings change over time I. Incorporating Country Risk in Capital Budgeting Capital 1. Adjustment to the Discount Rate a. Discount rate on a country project may be adjusted to represent the greater or lesser risk b. The lower the country risk rating, the higher the discount rate adjustmen...
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This document was uploaded on 10/05/2013.

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