As companies globalise and seek new business opportunities, they constantly face estimation risks associated with this globalisation. Globalisation has been the primary trend for investors and companies. When investors shift from the familiarity of domestic markets to international markets, they should consider whether their investments are subject to different levels of risk in different countries and whether they can have higher returns in some countries than in others. Every investment is exposed to some degree of risk in every country. These country-specific risks are included in country risk terms and used mainly by foreign investors. Exposure to country risk makes it a critical component of a multinational corporation’s valuation. Country risk has a significant impact on companies’ capital budgeting. Analysing and incorporating country risk has become a priority for most large corporations, as they have become more globalised and reliant on growth in foreign markets for their progress. Country risk includes political, economic, and financial risks that foreign investors are unfamiliar with.