3 Reducing economic exposure. Alright Ltd is a UK-based MNC that has a large government contract with

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3 Reducing economic exposure. Alright Ltd is a UK-based MNC that has a large government contract with Australia. The contract will continue for several years and generate more than half of Albany’s total sales volume. The Australian government pays Albany in Australian dollars. About 10% of Albany’s operating expenses are in Australian dollars; all other expenses are in pounds. Explain how Alright can reduce its economic exposure to exchange rate fluctuations.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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