Macro risk can be defined as the risk which foreign businesses may face as result of political changes in a country. It is also sometimes known as political risk.
E.g. after a government change the new government can be against certain policies which may affect the foreign companies so this is a Macro Risk.
• Making better estimates price movements of the respective assets
• Help in trading and investment strategies
• Wrong estimates on any such factor can lead to unnecessary price movements in respective assets