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International Finance Concepts

Identify and briefly discuss two important concepts applicable to international finance.

For example, the foreign currency risk can be mitigated through forward foreign exchange contract, currency swaps, etc.

I need about three to five sentences to answer this question.

Thank you.

(Answer provided in less than 100 words.)

Solution Preview

One important concept applicable to international finance is the optimal currency area. This is a concept by Robert Mundelll who stated that OCA was a geographic area in which a single currency would create the greatest economic ...

Solution Summary

International Finance is explained in a structured manner in this response. The answer includes references used.