Abstract:
Abstract: The purpose of this study was to show the effect of current country risk
on international finance. The findings of this exploratory study shows that
country risk considerably affect the operations of international finance but this
correlation cannot be stated with sufficient level of confidence. Data and
analysis of the study give us a notion that there are effects of country risk on
international finance and that effect is negatively correlated that means when
the country risk tends to be higher as in turn making the country rating lower,
the international finance is negatively affected. In contrary, when the country
risk is lower giving a higher country rating, international finance is positively
affected. The result shown gives us perception that due to political instability,
high interest rate, high inflation rate, and frequently volatile currency exchange
rate cause disturbance in the normal operations of the international trade that
reduce the country risk rating score and in turn the global international finance
gets hampered.
