The Possibility of Experiencing a Drop in Revenue or an Increase

question 56

Multiple Choice

The possibility of experiencing a drop in revenue or an increase in cost in an international transaction due to a change in foreign exchange rates is called

• A) foreign exchange risk.
• B) political risk.
• C) translation exposure.
• D) hedging risk.

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Definitions:

Indefinite Period

A time span without a specified end date, characterized by an absence of defined duration.

Part Performance

A doctrine that permits the courts to enforce an unwritten contract concerning land where certain conditions have been met.

Specific Performance

A legal remedy where a court orders a party to perform their obligations under a contract, rather than simply paying damages for breach.

Memorandum

A written record or communication used in business or diplomatic activities.