Source of Weak Currencies Currencies of some Latin American countries, such as Brazil and Venezuela, frequently weaken

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Source of Weak Currencies Currencies of some Latin American countries, such as Brazil and Venezuela, frequently weaken against most other currencies. What concept in this chapter explains this occurrence? Why don’t all U.S.–based MNCs use forward contracts to hedge their future remittances of funds from Latin American countries to the United States if they expect depreciation of the currencies against the dollar?

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