Manage the translation risk of your multinational enterprise, International Economics

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Question :

(a) Differentiate between Transaction, economic risk and Translation risk in foreign exchange market. (use an illustrative and numerical example in each case.

(b) In the case of transaction risks critically explain how one can use forward-spot swap deals and forward-forward deals to manage the risk.

(c) Analyse how, as group treasurer, you can manage the translation risk of your multinational enterprise?


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