When a company invests in another country that uses a different currency it is exposed to the risk that its cash flows will be affected by changes in the exchange rate for currency. What is this called: A. transaction risk B. translation risk C. overseas risk D. political risk E. economic risk
When a company invests in another country that uses a different currency it is exposed to the risk that its cash flows will be affected by changes in the exchange rate for currency. What is this called: A. transaction risk B. translation risk C. overseas risk D. political risk E. economic risk
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 1SBD
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