5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as welfor example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with another currency. Which of the following statements ane true about the factors that have an impact on exchange rates? Check all that apply. If a country experiences greater inflation than its trading partners, the value of its currency decreases over time relative to the value of its partners' currencies. When interest rates decrease in a country, its currency's value tends to decrease because domestic investors convert their home currency into other currencies to invest in these higher yielding securities ? If a government intends to let its currency's value fall relative to other currencies, it wil sell its currency from reserves in the market. If the demand for a currency increases, the currency's value will decrease relative to other currencies