What is meant by exchange rate risk and political risk

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Reference no: EM131488836

Question: 1. What is meant by (a) exchange rate risk and (b) political risk?

2. In the New York exchange market, the forward rate for the Indian currency, the rupee, is not quoted. If you were exposed to exchange rate risk in rupees, how could you hedge your position?

3. What risks are associated with direct foreign investment? How do these risks differ from those encountered in domestic investment?

4. Is the evaluation of a direct foreign investment more complicated than the evaluation of a domestic investment?

Reference no: EM131488836

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