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5 (6 marks). Consider a U.K.-based firm which sources, produces, and sells only in the U.K. The firm manufactures toasters and it's product has to

5 (6 marks). Consider a U.K.-based firm which sources, produces, and sells only in the U.K. The firm manufactures toasters and it's product has to compete against imported toasters from Germany and Japan. Do you think this firm is subject to foreign exchange exposure? Explain (word limit: 100)

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