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Explain the Sovereign Risk
Sovereign risk denotes a country imposing exchange restrictions on a currency included in a swap making it expensive, or not possible, for a counterparty to honor its swap obligations to the dealer. In this type of event, provisions exist for the early termination of a swap that means a loss of revenue to the swap bank.
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What is the explanation for leaset cost selection
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PEST analysis Political for instance political culture, bureaucracy of regulating competition Economic for instance exchange rates, interest rates, taxation or busines
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