Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory?

Company A owns a factory in a foreign country.

Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory?
A . Economic risk
B . Energy risk
C . Transaction risk
D . Translation risk

View Answer

Answer: D

Explanation:

Reference: https://webcache.googleusercontent.com/search?q=cache:rUr_SO58tB8J:https:// www.acowtancy.com/textbook/cima-ba1/d3-impact-of-changes-in-interest-and-exchange-rates-on­controlling-and-measuring-business-performance/impact-of-exchange-rate-changes/notes+&cd=1&hl=en&ct=clnk&gl=pk&client=opera