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Reducing Economic Exposure to Exchange Rate Fluctuations in Euro

1. Reducing Economic Exposure. Baltimore, Inc., is a U.S.-based MNC that obtains 10 percent of its supplies from European manufacturers. Sixty percent of its revenues are due to exports to Europe, where its product is invoiced in euros. Explain how Baltimore can attempt to reduce its economic exposure to exchange rate fluctuations in the euro.

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ANSWER: Baltimore Inc. could reduce its economic exposure by shifting ...

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This posting provides the answer to the student's International Finance question.