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1. What is a joint venture? Why is it sometimes essential to use this arrangement? What effect do joint-venture laws and restrictions have on the

1. What is a joint venture? Why is it sometimes essential to use this arrangement? What effect do joint-venture laws and restrictions have on the operation of foreign-based subsidiaries?

2. Corporations have both accounting exposure and economic exposure to exchange rate risk. What is the difference between these two? Which types of exposure would be most significant, and why?

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