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.
Sources
- The pros and cons of international trade - European CEO - europeanceo.com
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