One Problem That Investors in Foreign Countries Face Is the Possibility

question 281

Multiple Choice

One problem that investors in foreign countries face is the possibility of a decline in the value of that foreign country's currency. Which of the following would be an effective way to offset this problem?

• A) Be ready to pull out at the first sign of trouble.
• B) Convert as many of your dollars into their dollars as possible.
• C) Hedge through currency swaps.
• D) Finance your investment outside of that country.