Risks faced by Multinationals
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This solution explains risks faced by multinationals. The sources used are also included in the solution.
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The first risk that multinational corporations face is the risk of fluctuation of currency rates. These corporations are likely to suffer serious losses because of currency fluctuation. For example, a branch in a foreign country purchases goods worth $1 million dollars when the exchange rate is $1: 25 local currencies. However, when the delivery is made and the payment has to be done the ...
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