Domestic Firms and Risks
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Discuss ways a domestic firm could be exposed to foreign exchange risk and foreign political risk. For example, domestic companies often compete against imports. When the foreign currency depreciates against the USD, those imports will command lower USD prices, which boosts their sales domestically and hurts the US manufacturer. In what other ways could a domestic firm be exposed to foreign exchange risk and foreign political risk?
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The expert examines domestic firms and risks for foreign exchange.
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Many domestic firms use raw materials or components in the manufacturing of their products. The prices of such materials or components imported from other ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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