1. Define spot exchange rate and forward exchange rate. Define and compare accounting exposures and economic exposures to exchange rate fluctuations. 2. Explain how differing inflation rates between rios ffect th

1. Define spot exchange rate and forward exchange rate. Define and compare accounting exposures and economic exposures to exchange rate fluctuations. 2. Explain how differing inflation rates between rios ffect th

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 4E

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Question

Please answer in 15 mins I will rate for you sure.....

1. Define spot exchange rate and forward
exchange rate. Define and compare
accounting exposures and economic
exposures to exchange rate fluctuations.
2. Explain how differing inflation rates between
two countries affect their
exchange rate over the long term.
3. Discus macro and political risk.

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