Unlike exporters and licensors, who both face currency risk, managers of foreign investment portfolios can also be impacted by the fluctuation in exchange rates.

Question

Quizplus · Accepted Answer

Managers of foreign investment portfolios are impacted by exchange rate fluctuations because the value of their foreign investments changes when converted back to their home currency, affecting the portfolio's overall performance.

Unlike Exporters and Licensors, Who Both Face Currency Risk, Managers