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    Foreign exhange rate risk mitigation

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    Can you please help me by explaining the financial risks of conducting business internationally? Also, please explain the significance of foreign exchange rate risk and how this risk can be mitigated?

    Please list as much details as possible.

    © BrainMass Inc. brainmass.com October 4, 2022, 1:28 pm ad1c9bdddf

    Solution Preview

    The various financial risks of conducting international business are:

    Foreign exchange fluctuation risk: This is the most important risk in conducting international business as continuous fluctuations in foreign exchange rates of two currencies can significantly lower a firm's profits or expected revenues. This is due to the fact that there is a significant ...

    Solution Summary

    Foreign exchange rate risk mitigation is discussed in the solution.