Describe the financial factors that expose business

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Describe the financial factors that expose your business to country risk. Describe the political factors that expose your business to country risk.

Describe the capital structure that you would use to run your business. Why might the proportion of equity to be used in your business be limited when the business is first created?

If you planned to borrow long-term funds, you could borrow dollars or you could borrow the foreign currency of concern. Using the Internet or other sources of data, compare the U.S. interest rate to the foreign interest rate over the last 8 quarters. Which interest rate is typically higher?

Explain why you might be able to reduce your exposure to exchange rate risk by borrowing long-term funds denominated in the foreign currency of concern.

Reference no: EM132900599

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