Foreign exchange risk and foreign political risk

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Reference no: EM1329235

Discuss ways a domestic firm could be exposed to foreign exchange risk and foreign political risk. For example, domestic companies often compete against imports. When the foreign currency depreciates against the USD, those imports will command lower USD prices, which boosts their sales domestically and hurts the US manufacturer. In what other ways could a domestic firm be exposed to foreign exchange risk and foreign political risk?

Reference no: EM1329235

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