GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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occurs when a country depends too greatly on imports from one single country or when a country depends too greatly on exporting a very large number of exports to one single country
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a risk associated with the sale and accompanying transactions between two foreign markets
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a risk in which the exchange rates of either of the two countries will fluctuate
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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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Detailed explanation-1: -Speculative risk refers to price uncertainty and the potential for losses in investments. Assuming speculative risk is usually a choice and not the result of uncontrollable circumstances. Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain.
Detailed explanation-2: -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-3: -Whether shipping goods locally or abroad, you face risks such as breakage, loss, theft, vandalism, accident, seizure and contamination. Before you ship any goods, transfer responsibility for shipping to the buyer or seller and take out sufficient insurance.
Detailed explanation-4: -Foreign exchange risk. Political risk. Regulatory risk. Cybersecurity risk. Intellectual property risk. Commercial risk. Cross-cultural risk. Prepare for international fiscal crises. More items