Choice "C" is correct. Global sourcing is the use of a worldwide supply chain. The reduced production in U.S. factories, as a result of a natural disaster in Japan, is an example of the complications that come from global sourcing.
Choice "b" is incorrect. Transaction risk is the risk that the settlement of a specific transaction in a foreign currency will result in a translation loss.
Choice "d" is incorrect. Economic risk is the general risk that fluctuations in exchange rates could have a negative impact on a company that either consistently sells to foreign customers or consistently buys from foreign vendors.
Choice "a" is incorrect. Shifts in the economic balance of power relate to the shared and changing ability of countries to impact the worldwide economy.