Uncertainty regarding the domestic flows that result from converting foreign cash flows is what type of risk?
A) Repatriation
B) Expropriation
C) Exchange Rate
D) Political

Question

Quizplus · Accepted Answer

The uncertainty resulting from converting foreign cash flows into domestic currency is known as exchange rate risk. This risk arises due to the fluctuation of currency values in global markets, and it can impact the profitability of businesses that operate internationally. Repatriation risk refers to the possibility that a company may face obstacles in bringing profits earned overseas back to the domestic market. Expropriation risk refers to the governmental seizure of a company's assets or profits. Political risk is the potential impact of political events or developments on a company's operations or profitability.

Uncertainty Regarding the Domestic Flows That Result from Converting Foreign