A U$.$S$.-$based automobile company operates a manufacturing facility in Mexico, staffs it with Mexican workers, uses materials supplied by Mexican companies, and finances the entire operation with a loan from a Mexican bank located near the factory. This firm is most likely trying to greatly reduce, or eliminate, which one of the following?

options:

Interest rate risk.

Translation exposure.

Long$-$run exposure to exchange rate risk.

Short$-$run exposure to exchange rate risk.

Political ris