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Currency Exchange Rate for Risky Organizations

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Is the currency exchange rate risky for an organization? What are some pros and cons?

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Solution Summary

The solution shows the pros and cons of currency exchange rate for any organization. This is due to the fact that currency exchange rate fluctuates from time to time based on the socioeconomic and political situation.

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Whether currency exchange rate is risky or not for an organization will depend on the situation and circumstances.

Currency exchange rate fluctuates from time to time depending on the social, political and economic situation of the world.


If the organization is into export of goods and services, it is expected to gain if the value of local currency is lower vis-a-vis foreign currencies. This means that the exchange rate is favorable to organizations ...

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