Which One of the Following Is the Risk That a Firm

question 5

Multiple Choice

Which one of the following is the risk that a firm faces when it opens a facility in a foreign country,given that the exchange rate between the firm's home country and this foreign country fluctuates over time?

• A)international risk
• B)diversifiable risk
• C)purchasing power risk
• D)exchange rate risk
• E)political risk

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Definitions:

Relative Comparison

Relative comparison involves assessing or measuring something in relation to another similar item, considering their similarities and differences.

Insight Behavior

The understanding or learning of things through psychological introspection or a sudden realization.

Chimpanzees

Chimpanzees are primates that belong to the great apes family, known for their high intelligence and complex social behaviors.

Confirmation Bias

The tendency to search for, interpret, favor, and remember information in a way that confirms one’s preconceived beliefs or hypotheses.