Foreign direct investment and country risk: what kind of interaction?

Abstract

The aim of this study is to demonstrate the characteristics of Foreign Direct Investment and Country Risk. Through a theoretical approach, I mention the basic ideas of these two terms and the type of their interaction. In addition I examine the methods, the types and the effects. We are also going to understand how we can overcome country risk, a hazardous situation, in order for the investments to be more efficient and profitable in the host country, as FDI plays an important role in the economic development. In the end, we are going to present an empirical analysis survey in order to understand the relationship between FDI and Country Risk.