The rise of globalization is due to the many companies that have became multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find finding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with another currency. Which of the following statements are true about the factors that have an impact on exchange rates? Check all that apply. If a government intends to prevent its currency's value from falling relative to other currencies, it well sell its currency from reserves in the market. An increase in inflation tends to lower the currency's value with respect to other currencies with lower inflation races. When interest rates increase in a country, its currency's value tends to increase because foreign investors convert their home currency to invest in these higher yielding securities. If the supply of a currency increases, the currency's value will decrease relative to other currencies The relationship between interest rates and exchange rates can be represented through the concept of merest rate party. Consider the following