Which of the following is a political risk to a company's bottom line?Spot exchange ratesChanging tax ratesStable exchange ratesForward tax rates

Introduction: Political risks can be defined as those risks which would be faced by the investors or…

Answered: political risk to a company's bottom…

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political risk to a company's bottom line?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 8QA

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Concept explainers

Currency Market

The currency market, also known as the foreign exchange market, consists of currencies worldwide. This market determines the rate of all currencies based on the buying and selling of forex. It is an over-the-counter market. It is the largest and most liquid market based on trade volume.

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Which of the following is a political risk to a company's bottom line?

Spot exchange rates
Changing tax rates
Stable exchange rates
Forward tax rates

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