Firms in International Business face many opportunities as well as threats arising from___________________, which are determined at least partly by monetary systems.

Question

Quizplus · Accepted Answer

International Financial Markets, such as foreign exchange markets, can have a significant impact on a firm's financial performance and competitiveness. Fluctuations in exchange rates can affect the cost of raw materials and goods sold, as well as the profitability of exports and imports. Interest rate differentials between countries can also impact a firm's ability to finance operations or investments. Therefore, firms need to carefully manage their exposure to currency and interest rate risks in order to capitalize on international opportunities while minimizing threats.

Firms in International Business Face Many Opportunities as Well as Threats