Foreign-exchange risk can be important even for firms that have only U.S. operations.

Question

Quizplus · Accepted Answer

Even if a firm operates only in the U.S., it may have transactions with foreign entities or suppliers who invoice in foreign currencies. Fluctuations in exchange rates can impact the cost of goods, profitability, and cash flow. Additionally, changes in exchange rates can affect the competitiveness of the firm's products in global markets.

Foreign-Exchange Risk Can Be Important Even for Firms That Have