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As you probably know Treasury Wine is an Australian wine maker and sells its products in many overseas markets. Imagine that Treasury Wine is considering setting up a subsidiary in Germany to produce wine there to serve European consumers. The company wants to employ a matching strategy but is unable to borrow euros from a German bank. As an alternative, it can get euro-?nancing via either a currency swap or a parallel loan. Describe how these approaches work.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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