A Japanese fiRm Builds a Manufacturing Plant in Canada to Avoid

A Japanese firm builds a manufacturing plant in Canada to avoid transportation charges in bringing its goods to the Canadian market. The Japanese firm is apparently willing to bear the
_________________ of changes in the relative economic conditions between Canada and Japan.

A) Long-run exchange rate risk.
B) Unremitted cash flow risk.
C) Accounting risk.
D) Translation exposure risk.
E) Nationalization risk.