How does increased foreign exchange risk affect business?
A) This creates more opportunities for a business.
B) This has no effect on a business.
C) This has a negative effect on a business.
D) This makes it easier for a business to obtain customers.
E) This lowers the cost of doing business.

Question

Quizplus · Accepted Answer

Increased foreign exchange risk can negatively affect a business by creating uncertainty in cash flows, increasing costs, and potentially leading to losses due to unfavorable currency fluctuations.

How Does Increased Foreign Exchange Risk Affect Business