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    Foreign Exchange and Hedging Transactions

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    Discuss the concept of foreign exchange and why companies hedge certain transactions?

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    https://brainmass.com/business/foreign-exchange-rates/foreign-exchange-hedging-transactions-461457

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    HEDGE TRANSACTIONS
    Discuss the concept of foreign exchange and why companies hedge certain transactions?

    SOLUTION
    The likelihood that a business may lose funds because of changes in the foreign exchange rate is called Foreign Exchange Exposure. A multinational firm's profitability, net cash flow, and market value can change because of a change in exchange rates.

    Financial manager spend time measuring foreign exchange exposure and attempting to reduce it.
    There are ...

    Solution Summary

    Discussion Question - Foreign Exchange and Hedging

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