One Problem That Investors in Foreign Countries Face Is the Possibility

Multiple Choice

One problem that investors in foreign countries face is the possibility of a decline in the value of that foreign country's currency. Which of the following would be an effective way to offset this problem?

A) Be ready to pull out at the first sign of trouble.
B) Convert as many of your dollars into their dollars as possible.
C) Hedge through currency swaps.
D) Finance your investment outside of that country.