If a firm operates strictly in one country and has cash flows in only one currency then:
A) it can easily avoid any sort of exchange rate risk.
B) it will still face exchange rate risk if it produces a good or service that competes with imports in the home market.
C) it will still face exchange rate risk if it uses an imported product or service in production.
D) All of the above
E) Both (b) and (c)
Correct Answer:
Verified
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