International Finance and Investment Risk

International finance refers to the management of monetary transactions that occur between countries, including currency exchange, trade, and investment across borders. Investment risk in this context involves the potential for losses due to various factors, such as political instability, economic changes, or fluctuating exchange rates. Investors must assess these risks when deciding to invest in foreign markets, as they can affect returns. Understanding international finance and investment risk helps individuals and businesses make informed decisions about diversifying their portfolios and pursuing global opportunities while managing potential downsides.