making adjustments to the required rate of return

CFA Level II Equities
#1

I read that we should NOT make an adjustment to the required rate of return to account for differences in GDPs across different countries. Instead, it said we should adjust for expected currency translation, or adjust using a country premium.

My question is- isn’t adjusting for a country premium the same as adjusting for different GDPs?

#2

Never heard about an adjustment for GDP size between countries.

Country risk premium is not that surely, it is an extra required return because macro risk. For example, politics instability, government quality, probability of crisis, etc. Country risk premium is set as a spread between YTM of government long-term bonds.

#3

thnx!