Name one disadvantage of international trade.

Understand the Problem

The question is asking for a single disadvantage of international trade, which refers to the exchange of goods and services across international borders. The answer should focus on one specific drawback associated with this practice.

Answer

Exchange rate risk.

One disadvantage of international trade is exchange rate risk.

Answer for screen readers

One disadvantage of international trade is exchange rate risk.

More Information

Exchange rate risk is a significant disadvantage because the fluctuating exchange rates can impact the ability of businesses to accurately forecast their finances. This can affect both the value of existing assets and liabilities.

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