For years O.R.T.Technologies resisted moving any operations outside Israel.However,when faced with a sharp rise in the value of the shekel,the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe.This is an example of ________ risk.
A) political
B) economic
C) currency
D) management

Question

Quizplus · Accepted Answer

Currency fluctuations can pose substantial risks. A company with operations in several countries must constantly monitor the exchange rate between its own currency and that of the host country to minimize currency risks. Even a small change in the exchange rate can result in a significant difference in the cost of production or net profit when doing business overseas.

For Years O