Analysis of Investment Risks in Three Economies Represented by the United States, China, and India

Abstract

The continuous deepening of economic integration and globalization has led to the rapid growth of international market expansion, foreign direct investment, and institutional investment. Nowadays, more and more companies are taking the risks of international business to expand their business in order to seek huge business opportunities. Country risk analysis also provides insights into the specific investment risk components of individual countries. Many investors also choose to invest part of their portfolio in foreign securities. However, when investors enter any new market in the international business community, we must face market risks. Several international investors are paying more attention to country risk premiums when they come to assessing companies with activities in emerging markets. This article discusses the risk of investment between developing countries and developed countries represented by the United States, China, and India.