GK
BUSINESS MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
a risk in which the exchange rates of either of the two countries will fluctuate
|
|
a risk which results in the decline of a company’s economic value from currency movements, which causes a loss in competitive strength
|
|
a situation that presents the chance of a loss due to probabilities unknown
|
|
ability to speak two or more languages
|
|
company which has its facilities and other assets in at least one country other than its home country
|
Detailed explanation-1: -Exchange rate risk refers to the risk that a company’s operations and profitability may be affected by changes in the exchange rates between currencies. Companies are exposed to three types of risk caused by currency volatility: transaction exposure, translation exposure, and economic or operating exposure.
Detailed explanation-2: -There are many ways to measure an exchange rate. The most common way is to measure a bilateral exchange rate. A bilateral exchange rate refers to the value of one currency relative to another. Bilateral exchange rates are typically quoted against the US dollar (USD), as it is the most traded currency globally.
Detailed explanation-3: -Foreign exchange risk, also known as exchange rate risk, is the risk of financial impact due to exchange rate fluctuations. In simpler terms, foreign exchange risk is the risk that a business’ financial performance or financial position will be impacted by changes in the exchange rates between currencies.
Detailed explanation-4: -Foreign exchange risk is also known as exchange rate risk or currency risk. This risk arises from unanticipated changes in the exchange rate between two currencies. Multinational companies, export import businesses, and investors making foreign investments face exchange rate risks.
Detailed explanation-5: -Exchange Rate Fluctuation means all possible changes in the values of currencies quoted in the Tender relative to each other, arising as a result of market forces, formal devaluation or revaluation of those currencies or from any cause howsoever arising; Sample 1Sample 2Sample 3.