Because the firm either accepting or making the payment assumes the risk for the fluctuation, companies have a tendency to prefer handling international business transactions with their own country's currency rather than with the currency of another country.

Question

Quizplus · Accepted Answer

Companies prefer dealing in their own currency to avoid the risks associated with currency fluctuation, as it simplifies budgeting and financial planning by eliminating the need to speculate on future exchange rates.

Because the Firm Either Accepting or Making the Payment Assumes