Question

"Foreign exchange risk refers to the risk created by"​ ________. A. the fixed exchange rate between two currencies B. the potential seizure of an​ MNC's operations in a host country C. the potential nationalization of the​ MNC's operations by a host government D. the varying exchange rate between two currencies

Answer 1

I think it’s D, because “foreign exchange risk” does not say anything about the MNC, and a fixed exchange rate doesn’t cause that much of a problem. I might be terribly wrong.