investing domestically or abroad. If you invest in your home country, and your home currency devalues, you have lost money. Any and all stock market investments are subject to currency risk, regardless of the nationality of the investor or the investment, and whether they are the same or different. РThe only way to avoid currency risk is to invest modities, which hold value independent of any ary system.Р8РEXCHANGE RATE RISKРYou take a vacation in Japan and bring RMB along with you to convert into yen as needed to pay for your expensed and purchases.Р9РEconomic exposureРEconomic exposure: the risk that pany’s profits will be eroded by exchange rate changes because of rising operating costs. Companies are very limited in the actions they can take to protect themselves in this situation.Р10
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