Exposures to foreign exchange risk

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Reference no: EM133157282

Should companies hedge their exposures to foreign exchange risk? Discuss both views critically and state your recommendation. Use relevant research results to support your answer.

In this assessment, the following learning outcomes will be covered:

1. Demonstrate comprehensive knowledge of exchange rate systems and the interaction between exchange rates, interest rates and inflation.

2. Appreciate the types of risks faced by investors and multinational companies.

3. Apply and critically evaluate alternative techniques for managing foreign exchange risks.

Reference no: EM133157282

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