GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a risk which results in the decline of a company’s economic value from currency movements, which causes a loss in competitive strength
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a situation that presents the chance of a loss due to probabilities unknown
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ability to speak two or more languages
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company which has its facilities and other assets in at least one country other than its home country
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global market in which employers across the world may search for potential employees in foreign countries and vice versa
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Detailed explanation-1: -A situation that presents the chance of a loss due to probabilities unknown. A risk which result in the decline of a company’s economic value from currency movements, which causes a loss in competitive strength. A risk in which the change rates of either of the two countries will fluctuate.
Detailed explanation-2: -Economic risk refers to the likelihood that macroeconomic conditions (conditions in the whole economy) may affect an investment or a company’s prospects domestically or abroad.
Detailed explanation-3: -Foreign exchange risk occurs when the value of an investment fluctuates due to changes in a currency’s exchange rate. Foreign exchange risk is also known as FX risk, currency risk, and exchange-rate risk.
Detailed explanation-4: -Economic risk is the risk involved in investing in a business opportunity in an international market that arises from changes in sovereign policies, market fluctuations, and counterparty credit risk.
Detailed explanation-5: -The three types of foreign exchange risk include transaction risk, economic risk, and translation risk. Foreign exchange risk is a major risk to consider for exporters/importers and businesses that trade in international markets.