Please answer the following questions. a. Define exposure, differentiating between accounting and economic exposure. What role does

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Please answer the following questions.
a. Define exposure, differentiating between accounting and economic exposure. What role does inflation play?

b. Describe at least three circumstances under which economic exposure is likely to exist.

c. Of what relevance are the IFE and PPP to your answers to parts a and b?

d. What is exchange risk, as distinct from exposure?

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