Country Risk Analysis

This paper investigates the extent to which economic, political and socio-cultural factors help in country risk assessment. A risk rating model to evaluate the factors determining country risk is formulated. The results of the study show that India represents a high risk country. The economic risk has the highest risk score and political risk has the lowest risk score. However, various investor friendly reforms are on their way and Indias macroeconomic fundamentals and future prospects seem highly conducive for corporate growth.