Difference between transaction exposure-operating exposure

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Reference no: EM132002144

1. Define economic exposure explaining the difference between transaction exposure and operating exposure. Why is economic exposure management important for multinational corporations?

2. How could you build a portfolio of assets that eliminates risk entirely? Is this possible in the actual market?

3. Mexican wages rise relative to Chinese wages, while Mexican productivity falls behind Chinese productivity, what would happen to the value of peso versus Chinese yuan?

Reference no: EM132002144

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