Answer (C) is correct . Interest rates are an aspect of doing business within any modern economy. They are not unique to foreign investment.
Answer (A) is incorrect because Changes in the exchange rates of currencies are an inherent aspect of doing business in foreign countries.
Answer (B) is incorrect because The purchasing power parity theorem is an explanatory mechanism for the setting of long-term exchange rates between currencies.
Answer (D) is incorrect because The risk of expropriation by a foreign government is an inherent risk of doing business internationally.
| 
