Which term is defined as having international operations in a world where relative currency values change?

Question

Quizplus · Accepted Answer

Exchange rate risk refers to the possibility of financial loss due to unexpected changes in exchange rates when conducting transactions in different currencies. This is particularly relevant for companies with international operations, where relative currency values can fluctuate and impact profitability. The other choices (political risk, relative purchasing power parity, interest rate parity, and absolute purchasing power parity) do not specifically address the challenges of international operations in a world of changing currency values.

Which Term Is Defined as Having International Operations in a World