Risk
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Please assist with responding with the following questions:
What is foreign exchange risk?
What factors contribute to foreign exchange risk?
How is foreign exchange risk mitigated?
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Solution Summary
The expert determines what foreign exchange risk is. The factors that contribute to foreign exchange risk is given.
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foreign exchange risk is any type of uncertainty that is associated with exchange rates. This typically occurs in import/export industries.
Exchange rate risks are affected by the following areas
-economic, that is supply and demand. An increase in demand leads to appreciation and a decrease in demand leads to depreciation.
-government. government may force the exchange rate to go up or ...
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