User:Chihling Liao/sandbox

Foreign investment risk is the risk of rapid and extreme changes in value due to: smaller markets; differing accounting, reporting, or auditing standards; nationalization, expropriation or confiscatory taxation; economic conflict; or political or diplomatic changes. Valuation, liquidity, and regulatory issues may also add to foreign investment risk.

Four types of foreign investment risk

According to Matt Krantz, 2012 there are four types of foreign investment risk that need to be aware of:

Currency risk

Political risk

Regulatory risk

Tax risk