Country Basket

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Dictionary Says

Definition of 'Country Basket'

A selection of countries that are grouped together in order to provide insight into the effect of changing economic conditions. A country basket may track the economies and markets of countries that have similar economic characteristics, such as being part of the G8, that have particular trade characteristics, such as being export-lead, or that rely on the production of certain goods, such as oil.

A country basket can also refer to a basket of securities that track the performance of the overall economy of a given nation. The selected securities would include companies of ranging market caps and sectors.

Investopedia Says

Investopedia explains 'Country Basket'

Country baskets are used by investors in the creation of derivatives, such as those that track emerging markets. Rather than buy individual securities that track the indexes of each country, investors can purchase a security that tracks the performance of a country basket of indexes. The index may be weighted according to the size of each country's economy. Economists use country baskets to determine how changes to the world economy, such as a recession, may affect developing nations.
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'Country Basket'

  • The New World Of Emerging Market Currencies

    http://www.investopedia.com/articles/forex/07/emergingmarketcurrencies.asp
    ... This simply means that the currency is stabilized against a basket of currencies
    that is issued by the biggest trade partners of the country. ...

  • What is foreign exchange?

    http://www.investopedia.com/ask/answers/08/what-is-foreign-exchange.asp
    ... In other words, a currency's value can be pegged to another country's currency,
    such as the US dollar, or even to a basket of currencies. ...

  • Drastic Currency Changes: What's The Cause?

    http://www.investopedia.com/articles/forex/10/drastic-currency-changes.asp
    ... While country-to-country comparisons are useful, in terms of exchange rates, much
    can be explained by a pervading bias in one currency versus a basket of others ...

  • Currency Positions You Can Take Now - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Currency-Positions-You-Can-Take-Now.aspx
    ... EverBank offers a WorldCurrency CD that earns interest rates based on the local
    rates of a specific country or a basket CD that offers exposure to a variety of ...

  • Investopedia Forex Outlook For April 2012 - Calendar of Events to ...

    http://www.investopedia.com/university/monthly-forex-report-April-2012/calendar.asp
    ... likelihood of future monetary policy actions, as well as the country's economic
    health ... Price Index (CPI) measures average prices for a fixed basket of goods ...

  • Investopedia's Forex Outlook For May 2012: Calendar of Events ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/calendar-of-forex-events.asp
    ... measure of inflation calculated via the average prices of a basket of consumer ... traders
    looking for signs of a recovery following the country's troubled fourth ...

  • Deadly Flaws In Major Market Indicators

    http://www.investopedia.com/articles/economics/11/flaws-in-market-indicators.asp
    ... He might be taxed by his country of citizenship depending on the tax structure ... of
    measures that reflect the weighted average of prices of a basket of consumer ...

  • Forex Currencies: Emerging Market Currencies | Investopedia

    http://www.investopedia.com/university/forex-currencies/currencies10.asp
    ... (For more insight, check out Evaluating Country Risk For ... This foreign currency is
    commonly the US dollar or a "basket" (group) of developed-nation currencies ...

  • The Forgotten Asia

    http://stocks.investopedia.com/stock-analysis/2007/The_Forgotten_Asia_EWS_EWM.aspx
    ... Oil If we fly south, we will run into the fourth most populous country in the ... Fund
    (NYSE:IF) is a closed-end fund that offers investors a basket of Indonesian ...

  • An Introduction To The International Monetary Fund (IMF)

    http://www.investopedia.com/articles/03/030703.asp
    ... against a basket of currencies, which currently includes the US dollar, the Japanese
    yen, the euro, and the British pound. The larger the country, the larger ...

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