The correct answer is: A. country risk.
Country risk is the risk of loss associated with investing in or doing business in a foreign country. It can be caused by a variety of factors, including political instability, economic volatility, and currency fluctuations.
Foreign risk is a broader term that can refer to any type of risk associated with doing business outside of one’s home country. This can include country risk, as well as other risks such as currency risk, political risk, and operational risk.
Proffered risk is a term that is not commonly used in the financial world. It is not a recognized type of risk.
Common risk is a term that is sometimes used to refer to risks that are shared by all businesses, regardless of their location. This can include risks such as economic downturns, natural disasters, and technological disruptions.
Here are some additional details about country risk:
- Country risk can be divided into two main categories: political risk and economic risk. Political risk refers to the risk of loss due to changes in the political environment of a country, such as a change in government or a civil war. Economic risk refers to the risk of loss due to changes in the economic environment of a country, such as a recession or a currency devaluation.
- Country risk can be assessed using a variety of methods, such as credit ratings, political risk ratings, and economic risk ratings.
- Country risk can be mitigated through a variety of methods, such as hedging, diversification, and insurance.
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