Which of the following risks does currency fluctuation pose if a company is operating globally?

Currency fluctuations impact the relative profit expected from sales by affecting the value of revenues and costs in different currencies. When a company's operating in multiple countries, changes in exchange rates can lead to variations in profitability. For example, a strong local currency can reduce the competitiveness of exports by making them more expensive for foreign buyers, while a weak local currency can increase profit margins on foreign sales. Effective currency risk management is essential to mitigate these impacts.