What is the primary commercial risk concern for exporters

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Questions: What is commercial risk?

What is the primary commercial risk concern for exporters?

What is the primary commercial risk concern for importers?

1 | Describe two types of financial hedging instruments.

2 | What is natural hedging and what are its advantages and disadvantages?

3 A U.S.-based company that exports auto parts to Europe notices that the foreign exchange rate between the U.S. dollar and the Euro has tipped into a range that is unfavourable. In the past, the company has neglected to examine this FX risk but it now wants to analyze the FX risk and establish an FX policy. What are the steps that the company needs to follow to accomplish this goal?

 

Reference no: EM133410683

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