How uva ltd can reduce economic exposure to exchange rate

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Reference no: EM13935807

Reducing economic exposure. UVA Ltd is a UK- based MNC that obtains 40% of its foreign supplies from Thailand. It also borrows Thailand's currency (the baht) from Thai banks and converts the baht to pounds to support UK operations. It currently receives about 10% of its revenue from Thai customers. Its sales to Thai customers are denominated in baht. Explain how UVA Ltd can reduce its economic exposure to exchange rate fluctuations.

Reference no: EM13935807

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