Exhange risk faced by multinational companies.

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Issue:

Business

 

Written by:

Kristina L

 

Date added:

June 12, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1556

 

Was viewed:

9083 times

 

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Essay content:

What types of exchange rate risks do multinational companies face? One type of exchange risk faced by multinational companies is transaction risk. If a company sells products to an overseas customer it might be subject to transaction risk. If a UK company is expecting a payment from a US customer in June and the invoice was made in January, the exchange rate is bound to have changed during the period...
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If a company sells products to an overseas customer it might be subject to transaction risk. If a UK company is expecting a payment from a US customer in June and the invoice was made in January, the exchange rate is bound to have changed during the period. If the deal was worth ?1,000,000 and the american dollar compared to pound sterling weakened from US$1...
displayed 300 characters

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