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- Explain the techniques used to measure country risk and financial risk.
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- Define each following terms: p. American depository receipts (ADRs); repatriation of earnings q. Country risk; exchange rate risk; political risk; business climateA6) Finance Explain the statistical approach to evaluating sovereign country risk.Identify and critically appraise how the rating agency makes connections between the overall debt level of your country, external debt, inflation, institutional resistance and other macroeconomic factors, and the overall rating.