What Is Country Risk

question 49

Multiple Choice

What is country risk?

• A) the risk that the nation will suffer unemployment and inflation as a result of its economic policies
• B) a number of economic indicators reflecting the economic health of the nation that affect the ability of its residents to repay loans
• C) the relative risk of political instability, terrorist attacks, and military capability
• D) the total of the government's national debt plus private debt owed to international creditors

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Definitions:

Right-to-Work Laws

Right-to-work laws are statutes in some U.S. states that prohibit union security agreements between companies and workers' unions, ensuring that employment is not conditioned on union membership or related fees.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.

Union Shop

A workplace where employees are not required to join the union to be hired, but must join shortly after commencing employment and remain members for as long as they are employed there.

Company Towns

Communities where nearly all stores and housing are owned by the one company that is also the main employer.