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    Danish krone to the Maltese lira,Exposure to Political risk

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    1. What procedure(s) would you recommend for a multinational company in studying exposure to political risk? What actual strategies can be used to guard against such risk?

    2. Suppose a Danish krone is selling for $0.1845 and a Maltese lira is selling for $2.7211. What is the exchange rate (cross rate) of the Danish krone to the Maltese lira? That is, how many Danish krone are equal to a Maltese lira?

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    https://brainmass.com/business/finance/danish-krone-maltese-lira-exposure-political-risk-132827

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    1. What procedure(s) would you recommend for a multinational company in studying exposure to political risk? What actual strategies can be used to guard against such risk?

    The procedure multinational company should adopt to study exposure to political risk should be as follows:

    • Understand the indicators of political risk, which can primarily be defined by macroeconomic developments or more qualitative trends in the political life of the country.
    • Extensive analysis must be undertaken to derive predictive indicators of processing risk in trade. Quantitative indicators including reserves or more specifically, short-term debt as a total of all sovereign debt ...

    Solution Summary

    The expert examines Louis Zimmer Company statement of cash flows. This posting contains answers to following 2 questions.

    $2.19