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?
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Foreign exchange rate risk mitigation is discussed in the solution.
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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 ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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