What risks are associated with direct foreign investment

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1. How do purchasing power parity, interest rate parity, and the Fisher Effect explain the relationships between the current spot rate, the future spot rate, and the forward rate?

2.What are the additional factors encountered in international, as compared to domestic, financial management?

3. What risks are associated with direct foreign investment? How are these risks different from domestic investment problems? If so, why?
Please indicate references if any.

Reference no: EM133001113

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