Definitions for "country risk"
When speaking of international investments, this refers to the added risk associated...
The possibility that political events (a war, national elections), financial problems (rising inflation, government default), or natural disasters (an earthquake, a poor harvest) will weaken a country's economy and cause investments in that country to decline.
Some countries by virtue of economic, political, and geographical factors are more stable than others. Country risk in reference to forex means the stability of the currency and the creditworthiness of its bonds.