The possibility of experiencing a drop in revenue or an increase in cost in an international transaction due to a change in foreign exchange rates is called:

Question

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The possibility of experiencing a drop in revenue or an increase in cost in an international transaction due to a change in foreign exchange rates is known as foreign exchange risk. This means that a company engaged in international transactions may experience a loss if the exchange rate changes unfavorably.

The Possibility of Experiencing a Drop in Revenue or an Increase